Making Sense: The Rising Price of Oil
Paul Solman answers questions from NewsHour viewers and web users on business and economic news most days on his Making Sen$e page. Here’s Tuesday’s query:
Name: William Bair
Question: What, if anything, is be done on the rise of oil? For me, I ride a bicycle for six months and go to Guatemala for three which leaves three months for gasoline use.
Larry Bessler purchases gasoline at a Shell station February 7, 2011 in Chicago, Illinois. Photo by Scott Olson/Getty Images.
Paul Solman: Carpool? Is there public transportation in your town? The only way to restrain the price of oil is to decrease demand. The quickest way to do that is some sort of carbon tax. But of course, that will increase the price. Which is the whole point: discourage consumption.