Michael Savage calls for price controls on gasoline

http://www.homestead.com/prosites-prs/index.html ^ | churchillbuff/michael savage

[churchillbuff]

Michael Savage says it's time to do what Nixon did - - price controls

[Neanderthal]

"Doc Savage's PHD is in microbiology not economics. It shows...."

Right. He's an ignoramus on economic issues. He explained a few months ago that all California had to do to solve its economic troubles would be to issue bonds and borrow more money. He is truly clueless about economics.

[GoBucks2002]

Here's a way to lower the price of gas: suspend the federal excise tax for a month.

If you are concerned that the cost savings will disappear in increased profit margins of Big Oil, make it rebatable. Save your receipts and the Feds will refund you 40 cents or whatever it is per gallon. Or if it would be easier, the states can issue the refunds and the feds can reimburse them later.

[Rodney King]

On this one I agree with our fellow freeper that what happen today in Atlanta was a "hysteria of gouging" in some part of the city. Some gas station just lost their minds or any shread of ethics left in them to do what they did today. I hope it gets under control quickly and does not spread around.

Yeah, clearly what happened in Atlanta was freakish, and not the result of true supply and demand. But:

The gas station owners might not be much more informed than the average consumer, and might have innocently panicked. More importantly, what would you do if you were the station owner?

Let' say you have a tank with 10k gallons. You were planning on selling it for $2.50 per gallon. Next thing you know, a bunch of panicked morons are beating down your door willing to pay you $5 per gallon. What would you do? Do you sell it at $2.50, and quickly run out of gas? Or do you charge $5, and produce the result that the gas is allocated to those who desire it most?

[kevao]

I agree with you, but a price cap for 60 days is a lot different than an open ended, decades long rent control in nyc.

Here's the scenario. GWB implements a price cap for 60 days. Everybody now knows that the price of gas will be held artificially low for 60 days. What do you think people will do? What would you do? Immediately run out and stock up on as much gas at the current price as possible, before the cap is removed.

Price caps are a recipe for shortages, no matter the time period.

[HitmanLV]

Importing refined gas is a good idea, and waiving the taxes is a good idea also. We are caught here - we put too many of our eggs in a shaky basket.

Things will work out - they always do - but we as a nation need to make some tough decisions.

[agrace]

Were you the ex-oil company employee who talked about upstream profits vs downstream profits?

[Rodney King]

Yeah.

[RckyRaCoCo]

Carnac: "$3.50 and 2 burrito supremes"

Ed: "$3.50 and 2 burrito supremes"

(opens envelope)

Carnac: "Name 3 things that will give you a gallon of gas"

[jveritas]

You now that there is only eight million cars in China! They cannot even handle 8 millions cars. Can you imagine if they have 230 millions car as we do have here in the US not to take in considerations Trucks and other commercial vehicles. Despite all the problems, we still have much less crisis than Europe or Japan where gas price is more than double ours.

[oceanview]

there would be shortages.

some energy industry person was on Bloomberg financial radio tonight - say deals are being done now to buy refined european refined products to bring into the northeast. if price caps were put in place, those deals would simply evaporate, and those supplies won't materialize.

high prices are bad, shortages are worse.

what we need now is an organized nationwide effort for conservation. get people into car pools, telecommuting, 4x10 work weeks. Bush should try and rally people and US corporations on this. if everyone could cut their gasoline usage 20%, we could beat this problem in no time.

[af_vet_1981]

How about price controls on Michael Savage's personal property and advertising rates on his shows ?

[meyer]

What would you rather have? Gas you can buy at $3.50 a gallon, or no gas at $2.50 a gallon?

I'm contemplating that situation right now. I was planning a 600 mile trip on Friday, but if there's a shortage of gas, I'm not going. If the price is somewhat high but plentiful, I'll go on the trip.

A lot of people have a very poor grasp of economics. If gas prices seem high, consumers will find alternatives, either in the use of more economical vehicles or in alternative energies, if they are themselves economic. The law of supply and demand is self-correcting over time. Government intervention seldom achieves what a free market can achieve, and never does it as quickly or efficiently.

[fooman]

One can always buy the gas elsewhere if there is plenty of supply.

[Rodney King]

Importing refined gas is a good idea, and waiving the taxes is a good idea also. We are caught here - we put too many of our eggs in a shaky basket.

Theoretically it is cheaper to import the crude and then refine it here. I have been wondering, however, why mexico hasn't been building refineries all along the border and flooding us with refined gas, since the environmentalists won't let us build any refineries.

[Born Conservative]

I don't think Rush would agree...

[Nowhere Man]

Actually, if Dubya did it for 30 or 60 days it would make him look interested in it (instead of todays know-nothing statement) and add some juice to his popularity.

It's called leadership. Historically, there are times you have to do something to demonstrate leadership, when you do nothing or perceived as doing nothing, that shows lack of leadership. Sometimes the decision a leader makes to demonstrate leadership, it can be good or bad but sometimes a bad decision is "better" than doing nothing so one can look and act like a leader. I hope I'm coming across on this but it is important to demonstrate some action and leadership.

[Normal4me]

Price gouging? How about the station on my way to work raising their prices today by 45 cents a gallon? Their fuel was delivered Monday morning and the cashier told me they aren't geting anymore until Friday. That gas was bought and paid for already. Hell, even she admitted BP was raping us.

Oh yeah, Savage is an idiot.

[RckyRaCoCo]

[HitmanLV]

Well, when you put it that way... :-)