Re: Krugman on gas tax

["John Gelles" <jjgelles@xxxxxxxx>]

                    FAIR  IS  FAIR,  OR  IS  IT?

        Krugman's conclusion is rather profound:

        Referring to the public support for protesters in
        England, France, (and all places where high taxes
        and/or high prices are the object of protest by
        ordinary people trying to live on their income --
        or who just don't like the power of "others" to
        steal by raising prices or taxes --) Krugman says:

        "What this says is that what seems to be the
        defining feature of Western political economy at
        the turn of the millennium - the triumph of free-
        market ideology - is far less complete than some
        would imagine.

        "Ordinary people, when push comes to shove,
        feel that sometimes the market just isn't fair -
        and have sympathy for those who protest that
        unfairness, even if those protests adversely affect
        the population at large."

        When Al Gore got a similar message across, that
        Bush would cut millionaires' taxes by tens of
        thousands of dollars with a tax-cut that offered
        you and me tens of ten dollar bills, he tapped
        into the same resentment against what is not fair.

        Just how laissez-faire can be fair is the key
        question -- now that we know communism
        cannot be sane, let alone fair. The so called
        middle way, the welfare state with effective
        human rights, and democractic elections, as
        we know them, remains the best answer so far.

        Global competition has attempted to murder
        the welfare state we knew -- but, perhaps,
        tax protesters show it can be resuscitated or
        resurrected.as needs may be.

        The concept of auction prices for fuel and
        the necessities of life, coexisting with the
        oil monopolists and high pension taxing
        authorities, without adjusting wages and
        incomes, for those who live from hand to
        mouth, to keep up with prices, is patently
        unfair.

        If the aim of the fuel tax is to reduce
        frivolous driving, the tax authorities should
        have promised rebates to farmers, truckers
        and others whose driving is necessary.
        With all the computers we have today. that
        we never had before, a rebate system would
        be a snap.

        Perhaps it is time to move to indirect hire
        for all who live by wages (and have virtually
        no capital). Then business could hire labor
        for what it's worth in a labor market. And
        government could actually administer the
        payroll -- and make necessary adjustments
        as fast as the auction market operates:
        adjustments that would keep incomes
        at a fair level in relation to price.

        People whose income was high enough
        not to need or want indirect hire, would
        stay as they are.

        John Gelles
         email    1944@xxxxxxxx
             url    http://www.1944.org
                     http://www.1944.org/whatsnew.htm


----- Original Message -----
From: Alan G. Isaac <aisaac@xxxxxxxxxxxx>
To: Post Keynesian Theory <pkt@xxxxxxxxxxxxxxxx>
Sent: Monday, September 18, 2000 6:40 AM
Subject: Krugman on gas tax


Some pkt'ers may find this of interest.
 http://www.nytimes.com/2000/09/17/opinion/17KRUG.html

Alan Isaac