Posted by Adam @ 3:14 pm on May 31st 2007

Gas price-gouging

So, the House is taking a stand against the shadowy legions of gas price-gouging profiteers, who are gorging themselves on the fruits of human misery, swine who are well worthy of at least one nazi comparison per paragraph.

Boo. Hiss. Boo.

But, alas. Hold your horses (or pferde, as Hitler would have called them).

Price gets driven up by scarcity (as measured relative to demand). That’s a good thing, in fact, because if price didn’t go up it wouldn’t moderate demand and, therefore, we could exhaust supply. So-called ‘gouging’ makes sense to a supplier that knows that supply is limited; they’ll make more per unit but they have to, because there are less units to sell. Those nazi bastards.

The House, of course, cannot bear to tell Americans that they might, you know, have to use less gasoline, not when they can pass meaningless feel-good laws, aimed at the arrayed stormtroopers of Big Oil, that will achieve nothing at best and, at worst, do real harm.

1 Comment »

  1. Is the world ever going to wake up to free market economics? Sigh.

    Comment by weltschmerz — 5/31/2007 @ 4:23 pm

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