Not another gas price rise!

Written by Amanda Boehm-Garcia   // July 7, 2011   // 13 Comments

Gas prices

With gas prices soaring above $3.00 dollars a gallon and continuing to climb I think we all can safely agree they will probably never drop below that again. I am sure myself and everyone else has pretty much adjusted to this change, but I do have to wonder if you drive an automobile everyday to get back and forth to work so you can continue to pay these prices, would you want to inflict further pain on the everyday consumer and request a $ 1.00 dollar raise on already too high gas prices?

Sounds crazy enough but that’s what General Motors Co. CEO Dan Akerson wants to do. In a recent article about increasing the gas tax, he states that he feels adding that extra dollar to our already high gas prices will push consumers to purchase smaller more fuel efficient cars instead of the big bulky trucks. Per a quote taken from the article above, Mr. Akerson stated  “You know what I’d rather have them do – this will make my Republican friends puke –as gas is going to go down here now, we ought to just slap a 50-cent or dollar tax on a gallon of gas. People will start buying more Cruzes and they will start buying less Suburban’s.”

Financial analyst Jonathan Hoenig, who believes the taxpayer-owned GM still hasn’t bottomed out, writes:

“You may recall the slick TV ads aired last year, in which then-CEO Ed Whitacre boasted how the company had paid back governmental loans “in full.”

Just a few months later, however, government officials admitted taxpayers will lose more than $14 billon on the deal. Whitacre, who received $9 million in compensationlast year, has since left the company, which has had four CEOs in the last 26 months.

GM’s willingness to use political influence for corporate gain hit an absurd and nearly pathological height this week when current CEO Dan Akerson, who also receives yearly compensation of more than $9 million, advocated raising federal taxes on gasoline in order to prompt consumers to buy more fuel efficient cars.

Overlooking for a moment the terror of an executive who actually sees federal taxation as a legitimate business strategy, Akerson neglects to mention that even given today’s historically high gas prices, GM’s heavily subsidized Volt sold a grand total of 481 vehicles in May. Perhaps he’d prefer a law that simply required taxpayers to buy GM cars?”

I for one am not going to give in and conform to what GM is trying to push the public into. I may not drive the most high class fuel efficient car on the market but I am also not going to support Mr. Akerson and go trade in my lifted Jeep Cherokee for one either.  What he is demanding is that the federal government control how the everyday consumer spends their hard, very hard earned money (including their taxes) and wants it spent at a dealership, preferably his buying a new car.

The economy is down and so are sales.  Obviously it’s not just for GM but for everyone.  Punishing the consumer by raising the gas prices will not only hurt the direct consumer but it will also hurt everyone in direct contact with the consumer as well. Think about the semi trucks carrying groceries? That means food prices will also have to rise just to keep up with that demand. Too many are already struggling to keep food on the table now and he wants to make that harder as well. I’m no genius but from adding all of this up and common sense it looks to me like he wants to put America further down than we already are and give us all no hope of return so he can try and put a little money back in his already deep pockets when his crazy idea plays out and consumers go and trade their trucks in for the fuel efficient cars he mentioned. Then production rolls back out for him but the economy is even further in debt for everyone who financed these new cars…

When does this end? Any suggestions?


13 COMMENTS

  1. By Tax-y Lady, September 22, 2017

    I agree that I don’t want to pay more for gas, but maybe it would be better for all of us to drive smaller cars and use less gas. I lived in Europe about 10 years ago. Even then, they were paying the equivalent of up to $3.00 per LITER of gas. And most European cars are small, like the smart (check them out at: http://www.smartusa.com). Now, smart cars are available in the U.S.- even a four-seater model and an electric model. My family has one and we love it. It gets great gas mileage, fits in the smallest parking space, is cute and fun, and is the only convertible I know of that you can buy for $18,000. Base models run about $12,000. We average about 35 miles to the gallon. Did I mention it is a Mercedes Benz?

    Reply
  2. By eMoney, September 22, 2017

    I also agree that I don’t want to pay more for gas. However, moving towards more fuel efficient cars is definitely a good idea, but not right now. I think that once we get out of the bad point in the economy where unemployment is high, and wages remain stagnant, it is better to create incentives for people to get more fuel efficient vehicles when they are better off financially.

    I think consumers should reassess there transportation needs v.s. their wants once they are in a stable financial position, and have a decent stable job. Asking them to try to afford a brand new car with all the uncertainty that exists in the economy, and increasing gas prices is a really bad move.

    Reply
  3. By Rick, September 22, 2017

    Being a bike rider (my commute to work) I never pay attention to gas prices but this article made me think, if I did drive would I choose a fuel efficient vehicle? I can say based on Mr. Akerson idea of taxing gas prices it definitely would be choosing a more fuel efficient ride. To me this Guy is like most Corporate big wigs, he isn’t really concerned w/ the average Joe. He is more concerned about fattening his pockets. Do you really think this guy cares about how much he pays for gas? Any one making millions of dollars doesn’t care how much they pay of gas just like I don’t care b/c I ride a bike.

    Reply
  4. By JBanks, September 22, 2017

    This is what happens when you allow your political ideology to inform your economic policy. Politicians have long used tariffs to try and influence demand for one favored group or another. Now that the federal government has a stake in the auto industry, efforts to unnaturally manipulate the market via taxes should surprise no one…

    Reply
  5. By Mark Chen, September 22, 2017

    It pisses me off that Whitacre gets $9 Million per year in compensation. That’s insane.

    The answer is not higher gas prices. I think the automakers should focus on making vehicles that get better mileage. I believe they already have the tecnology to do so.

    Reply
  6. By dolrdolrbill, September 22, 2017

    So you’re telling me that it is not a good idea to drive my LARGE SUV around in a metropolitan area? I know the gas mileage is not good and it takes $100 to fill my tank, but I love driving to work in my SUV.

    Reply
    • By Money Hungry, September 22, 2017

      Thats not what I am saying. Thats what Mr. Akerson is saying. I like you, Disagree. Mr. Akerson feels that adding the $1 tax on gas prices will make the general consumer break down and buy more fuel efficient cars. Understandable in a sense that many will in fact do that, however what about the percentage of consumers who don’t have the money nor the credit to afford these cars or the financing for these cars or let alone the $1 gas tax? I am not trying to choose a side but I also do not feel that this is the way Mr. Akerson needs to be pushing the economy into. Maybe when we as a country are not so far in debt and can actually hand the damage that tax would do we can reconsider but as of now we are not.

      Reply
      • By dolrdolrbill, September 22, 2017

        Is there a petition we can sign to avoid Akerson forcing us to buy low emission vehicles that are behind in technology?

        Reply
  7. By John Dough, September 22, 2017

    I think it’s fair to say no one is in favor of higher gas prices, but waiting till the economy turns around is like waiting for criminals to obey the law. Unless there are strong incentives for a behavior change in the way consumers shop and spend, raising taxes will only hurt the poorest in the country. The more jobs that are sent oversees directly impacts the average commute of the American worker. Lets focus on bringing jobs closer to home and then the price and taxation of gasoline will be irrelevant.

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  8. By Cassandra, September 22, 2017

    It is hard enough to live now with the gas prices where there are. It is ridiculous to think they will go any higher. Some of us barely make enough money to pay our bills and then get us to and from work on a daily basis, not to mention feeding ourselves. While I do believe that fuel efficient cars are good, not everyone can afford them. If fuel efficient cars were made more affordable, and more readily available for everyone, then the gas price issue wouldn’t be as big of a deal.

    Reply
  9. By thelovebug, September 22, 2017

    i think its screwed up that they are trying to do this. not all of us can afford a newer car that has better gas mileage. i have a 94 jeep and it cost me to much as it is to fill her up. why cant they just leave it be and let us live.

    Reply
  10. By T-Dog, September 22, 2017

    Of course a big, rich millionaire of a major US auto maker is going to do or say anything to bring more revenue into his already overstuffed pockets!!! The incentive for us to buy smaller, more fuel efficient vehicles, although still not cheap, will totally benefit him! That is of course if we all bought all of GMs compact models. Personally, if Mr. GM were to succeed in pushing a $1.00 increase on already outrageous fuel prices, I still wouldn’t buy any of the his models! Besides, the money you spend buying one of Mr. GM’s small cars could buy you a descent amount of gas for your current model.

    Reply
    • By MoneyHungry, September 22, 2728

      I completely agree with you. His point is saying “Raise gas prices even more, Buy my cars and eventually it is supposed to save you money.” I disagree becuase your expected to do just that. Go spend 25 grand on a new car then continue to pay the 4-something in gas prices, But because you just bought a more fuel effecient model the 4-something gas price is not supposed to effect you as it would if you didnt buy a new 25 grand car. He is just trying to make is pockets deeper and hurt the economy even more. Just because he doesnt live in the middle and lower class doesnt mean he has to hurt the people that do.

      Reply

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