----- Original Message ----- From: <[EMAIL PROTECTED]> To: <[email protected]> Sent: Friday, September 02, 2005 9:33 PM Subject: Re: Gas Prices
> In a message dated 9/2/2005 5:50:47 PM Eastern Daylight Time, > [EMAIL PROTECTED] writes: > > > Price controls > > are almost always a bad idea. They've always been a > > bad idea. They're the idea of people who think that > > they are somehow morally exempt from the laws of > > supply and demand, a position that makes about as much > > sense as claiming you're morally exempt from the law > > of gravity. You might _want_ to be, but I still > > advise a parachute next time you jump out of an > > airplane. > > > > In this case, if we were to not raise the price of > > gasoline when the quantity of gasoline available has > > shrunk, the outcome would be immediately predictable. > > Shortages. Gas lines. You raise the price of > > something if you want people to use it more > > efficiently. We now have less gasoline. You want > > people to use it more efficiently? The price has to > > go up. It can go up in the dollar price. Or it can > > go up by making people wait in line. We tried that in > > the 1970s, it wasn't really a successful policy. > > Unless you're a member of the left, I guess, which > > seems to believe that the entire world should be run > > like the DMV. > > > But there has to be some way to deal with emergencies such as this. For the people hit by the hurricane, this is an emergancy. But, the hit on our refining capacity was not overwhelming. From what I've seen, about 12% of the refineries were shut down temporarily. From what I've seen, the production loss should be fairly short term....so this shutdown should be the sort of blip a big ecconomy like the US's handles in stride. >It is not a matter of simply don't drive. Some (many) people need to drive to get to > work. Would not the economy suffer if people can't afford even essential gas > consumption. Isn't there some limited (in time or amount) of relief that can be > given that will bend but not break the market. I honestly don't see how. If there isn't a shortage, the information will come out and the gasoline prices will continue to fall (Oct. futures dropped $0.23 today)....and nothing will have to be done. But, if there is a shortage, and prices are kept constant, what, besides rationing or gas lines, would reduce demand to the level of supply? This isn't a rhetorical question, I can't think of another mechanism that would work quickly and efficiently. Dan M. _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
