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To: NYorkerInHouston

The free market will take care of this problem. Demand exceeds supply, price goes up, new resources become economically feasible the market adjusts, supply goes up, price goes down. On and on it goes.


10 posted on 08/13/2005 10:13:26 AM PDT by TheDon (The Democratic Party is the party of TREASON!)
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To: TheDon
new resources become economically feasible the market adjusts, supply goes up, price goes down. On and on it goes.

Ya, but it takes time. In the short run, the demand for oil is quite inelastic, which means in the short run, a potentially very large spike in prices. Buckley may overstate the magnitude of the economic disruption, but the disruption will be real and palpable, and damaging.

Nodody anticipated apparently that the Indians and Chinese would be increasing their demand for oil as fast as they have been, and nobody seemed to take seriously that the supply of oil may be near its peak from pumping it from the ground (other ways of getting it are far more expensive and environmentally damaging), and about to commence a long slow slide downward.

Buckley's voucher scheme is a cross subsidy to those who use relatively little gas, from those who use relatively more. It would really screw those who have long commutes. The price of housing in the exurbs would take a great big dump, and nice inner city and close in neighborhoods would get a price boost. The Detroit auto makers would go bandrupt faster than we currently think they will. And then there is home heating oil. Oh dear.

34 posted on 08/13/2005 10:54:16 AM PDT by Torie
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