I support a fuel excise cut

The government reduced fuel tax to offset higher fuel prices for businesses and consumers. As an economist, I should be angry. I was against such things. I did. I knew and believed the orthodox economics textbook view.

But a person who doesn’t adapt textbook understanding based on years of real-world experience perhaps loves textbooks more than understanding.

Direct effect on inflation

The past few years have provided significant experience with high inflation, and cutting taxes in the event of a supply shock can really help reduce a spike in inflation.