Are fuel subsidies a good investment?

T

tinfoil

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I posed a question in a conversation between myself and my buddy (he's a Jon-Stewart liberal ) and he agreed it might be possible. I wonder if anyone has any good info on the issue to help answer the following question:

Do fuel subsidies keep the price of fuel low and does the the ensuing effect provide enough added economic activity to pay for itself in increased tax revenues?
 
tinfoil said:
I posed a question in a conversation between myself and my buddy (he's a Jon-Stewart liberal ) and he agreed it might be possible. I wonder if anyone has any good info on the issue to help answer the following question:

Do fuel subsidies keep the price of fuel low and does the the ensuing effect provide enough added economic activity to pay for itself in increased tax revenues?
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No they do not keep prices low. They distort market forces. It is basic economics. Economics does not change due to different topics.
 
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