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Platypus Economics with Justin Wolfers Podcast
A Gas Tax Holiday Would Miss the Point—And the People Who Need Help | Diving In

A Gas Tax Holiday Would Miss the Point—And the People Who Need Help | Diving In

Platypus Economics with Justin Wolfers vor 3 Monaten

0:00

17:33

A gas tax holiday sounds like relief, but gets the economics
wrong in almost every direction.

Today’s high prices are a war problem — not a tax problem. And
cheaper gas is the exact wrong response to a shortage. When
something is scarce, higher prices send a signal to conserve, but
a tax cut blunts that signal and encourages more demand at
exactly the wrong moment. It's akin to subsidizing showers in a
drought.

Even more frustrating, the difference between impact and
incidence means that much of the benefit would bypass drivers
completely — fattening the profits of oil companies instead.

Key takeaway: If you want to help families during an energy
shock, target the hardship—not the gasoline.

Like and review for more clear-eyed economic analysis with Justin
Wolfers—no empty tanks, no empty talking points.

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