The Real Tax is the Iran Tax

Not the Solution to a Supply Shock

Those Who Need the Most Get the Least

Impact vs Incidence — How Oil Companies Win

We’ve Seen this Movie Before

The Broader Lesson — Data Over Vibes

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.

A gas tax holiday sounds like relief, but gets the economics wrong in almost every direction.
Today&rsquo;s high prices are a war problem &mdash; 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 &mdash; fattening the profits of oil companies instead.
📈 Key takeaway: If you want to help families during an energy shock, target the hardship&mdash;not the gasoline.
⛽ Like and review for more clear-eyed economic analysis with Justin Wolfers&mdash;no empty tanks, no empty talking points.

From world events to everyday decisions, economics explains it all. Platypus Economics makes it clear, useful, and actually fun.

From world events to everyday decisions, economics explains it all. Platypus Economics makes it clear, useful, and actually fun.

Platypus Economics with Justin Wolfers

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

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/3c6ea590-fcd0-47dd-a69e-b45700c75749/transcript