Rates are crashing and fuel to the moon!

Fuel doubled over the last couple months and now suddenly “saving” 24 cents per gallon is the solution.

cracks me up!

 

Eventually, we end up paying. In the short term, government deficit spending is fine if it supports a healthy economy. In this case, temporarily suspending the fuel tax won't have a noticeable impact on consumer prices and won't stimulate the economy so we accumulate debt with little to no benefit.

If debt to gdp was below 75%, okay - its not the end of the world. When it's 115% it's theatre we can't afford.

 

It's all theatre but putting the fuel tax back in place will not change the debt one way or the other to gdp it's a drop in the ocean.

 

Suspending the federal fuel tax for 90 days will cost about $10 Billion in revenue. That's not nothing, particularly if it doesn't result in consumers saving $10 billion in fuel.

 

The federal budget is almost $8 trillion. $10 billion is nothing to the federal government.

 

So, my fuel cost is up .20 per mile on average for the last couple months. But my $pm is up 1.50-2.00 per mile. This high fuel thing seems to be working out fine for the spot market.

I know, lots of you will say it won't last and I'm a fool for hauling load board freight but as always, the spot market thrives on chaos. Any of you guys see any less chaos in the future?

 

This is like covid all over again these great rates are not from solid fundamentals good economic times sort of deal. When the dust clears again just like with covid there'll be a lot more inflation and a lot of people complaining about low rates going out of business. That might be a year or two down the road or it might be 6 months. That's just my best guess at where it's all headed. So for sure be stacking cash while you can.

 

This is not because of fuel, it's because fresh immigrants are losing their CDLs

 

You're right but I can't see that in my numbers. I can only see how fuel influences things. But just like I said, spot market thrives on chaos. And there's always chaos.

 

And what is $10 billion to federal road spending?

If we want to permanently abolish or reduce the fuel tax, okay. The money will come from someplace else. My problem is with the temporary suspension - it doesn't give consumers relief unless a 'soft price cap' is instituted. That 'soft price cap' comes at a price. First off it messes with market forces, and if government is going to intervene in the market they should make decisive moves - not piffle about. More importantly it increases regulatory burden on retailers, which requires more government bureaucracy which negates any benefit to the consumer. It's "go along to get along", which works until it doesn't.