Thursday, August 25, 2005
Speaking of Bad Ideas (Because We Were, You Know)
This seems like a mighty bad idea to me.
Controlling consumer costs for gas at a local level won’t actually change the cost to providers.
That is, just because a governing state board tells me that I have to sell pens for $1 a piece doesn’t magically change the actual value of that pen if my supplier sells them to me for $1.25. That means that one of two things happen: either I stop selling pens or, as McGehee points out, I could raise the price of other goods to offset the loss in revenue.
Comments & Trackbacks
Yeah. Right. Price controls have always worked in the past so why not try them again?
When will these stupid-ass politicians and would-be do-gooders realize that America is so great because of the free market, not because of government controls?
"Californians fed up with high gasoline prices might take some inspiration from Hawaii.”
My God! Didn’t California learn its lesson when it tried to cap energy prices? Remember that? It led to an decrease in supply (surprise!), rolling brownouts, and got a Governor booted in favor of an action movie star.