Posted on 08/31/2005 6:13:58 PM PDT by churchillbuff
Michael Savage says it's time to do what Nixon did - - price controls
That's a statement I would agree with.
Merely asking is dumb. Central Planning from the government is also dumb.
Letting the price rise to create a new equilibrium is not dumb....though it may be painful.
And economically, I know pain, pal. It's hard to have compassion for a climber that wants it easier, when you're looking up at his arse.
where is the oil from the wellheads going, leaking into the sea?
It does, in an around-about way: New Orleans is being taxed for failing to build higher levees. People are taxed by standing in line for hours to buy gas in short supply. A chill-tax applies to all who encounter winter without heatpumps that a nuke plant could power for a few cents per day.
Basically, NIMBY translates into Into Your Front Yard. You deal with it, sucker. I'd like to see ten nuclear plants going on-line yesterday. But that would have taken politicians looking out for our interests, rather than the bunch today with their lips around the oil teat.
In some cases maybe, but I would think that the water pressure may be enough to keep the oil below ground.
That's one silver lining to the increased price. There are oil sources that are economically unviable when the price is below a certain level. As the price increases, more of these sources become viable. Once the price threshold is met making the initial capital investment viable, more sources will come on line. And they will remain online, because the initial capital investment is the biggest barrier.
As for our refining capacity, I'm sure you know that even before the hurricane, our refineries were already operating at near capacity; we haven't built a new refinery in this country since the 1970s. In fact, our refining capacity is so limited that we import 10-15% of our gasoline (that's right, refined product) from abroad. The problem is political -- everyone (except the Greenies) wants more refining capacity; but nobody want a refinery in his backyard.
The weakening dollar has to do with our increasing debt-to-GDP ratio, now at some 60%; or, as fooman would argue, 40%, because Social Security payments shouldn't be considered as a government obligation (much as I suspected because, like the other 80% of my generation in a poll conducted a few years ago, I believe I'm more likely to see a UFO in my lifetime than a Social Security check).
Ber realistic - 95 cents! ;-)
your solution may be perfect for a textbook, but it stinks as real economic policy. it will cause massive economic (and political) dislocations, which are uneceessary, when a sane policy can be implemented to reduce consumption.
would I mandate corporations allows flexible telecommuting and work weeks? I would damn sure do that before starting some massive government gas rationing coupon system, or just letting many americans descend into an economic black hole.
politically, your idea is a loser too. imagine Bush using the bully pulpit to tell americans "if you can't afford the gas to get to work, and have no other means, quit your job".
you arent missing a thing.....hes way gone.
"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?"
I would ask $5.50, but take the highest bid. This gas station owner might not get another shipment of gas for a week or a month, but his bills will still need to be paid and his family will still need to eat. He should be allowed to get what he can for the supply he OWNS. If the buyer doesn't like it, go somewhere else.
Savage can say some pretty funny things, but this is pretty dumb. I guess he has not studied the history of price controls.
I think we can all agree that it's the poorest among us who will be hit most by increasing gas prices. Like it matters to Bill Gates whether it costs $50, $100, or $150 to fill his SUV.
So, no need for price caps. Let's just increase the minimum wage to $50/hour. That should be more than suffient to offset their increased fuel costs, and even leave a little surplus to donate to the Katrina disaster relief. Plus, we can elimate poverty in one fell swoop.
No need for price caps if everyone makes over $100,000/year.
Some creative thinking! I LOVE IT!! ;-)
Well, HitmanNY, the scarey thing is, a lot of people in this country would not write it off as creative thinking; they'd take it as a serious policy proposal, worthy of consideration, and even implementation.
You saw right through me. I agree with the point you originally made, and with the thought that there are too many folks who would think it was a serious policy proposal.
>>>>Just what you would expect from a red diaper baby.<<<<<
Agree, I dumped the program when he mentioned 'price controls'
http://www.csmonitor.com/2005/0325/p02s01-usgn.html
Texas explosion raises concerns about aging refineries
Most of the energy plants in the US are over 25 years old and operating overtime to meet growing demands for oil.
By Kris Axtman | Staff writer of The Christian Science Monitor
HOUSTON – This week's deadly blast at an oil refinery south of Houston, the area's worst such disaster in 15 years, has put a fresh focus on questions about the age and safety of America's oil refineries.
The blast at the British Petroleum refinery rocked the Texas City area Wednesday, leaving more than a dozen dead and more than 100 injured. The explosion sent plumes of black smoke high into the air and shattered windows of nearby homes and buildings.
The industry seems to be holding its breath, and experts warn against premature conclusions until the cause of the blast is known. Whether it was worn-out equipment or human error could make a big difference in how the accident is perceived and dealt with.
"But either way, this is the accident we are always worrying about," says Robert Ebel, chairman of the Energy Program at the Center for Strategic & International Studies in Washington. "It shows the very, very slim balance between oil supply and demand right now."
It's important to note that chemical plants, even with all the careful safety procedures, are dealing with dangerous explosive materials and machinery.
They require annual or semiannual inspection and maintenance, but the newest are at least 25 years old - brought online during the oil boom of the mid-1970s. Many are even older. The BP plant, for instance, began operating as an oil refinery in 1934 under another owner.
But because of the 1990 Clean Air Act and the changing requirements for cleaner gasoline products, many of these refineries have been highly upgraded with new equipment and technology.
Even so, there continue to be sporadic accidents and problems at these plants. This is the second accident this year at the sprawling BP plant in Texas City, for instance. A September accident that killed two workers led the Occupational Safety and Health Administration (OSHA) to fine the company over $100,000 for safety violations. And last year, BP was fined $63,000 by OSHA for 14 violations following a March 2004 accident.
"We are coming to a very challenging period in the US industry," says Amy Jaffe, associate director of the energy program at Rice University in Houston. "We are now in a spell where we expect all refineries to be producing flat out and that is going to have consequences."
Ten years ago, America's refineries were running at around 70 percent capacity, but increasing global demand and tightening supplies has sent prices soaring and is taxing aging refineries. "The bottom line is, we are running our refineries today at over 90 percent capacity, and they were not really designed to run at that level," says Ms. Jaffe.
Wednesday's explosion was the area's deadliest since a 1990 explosion at Arco Chemical Co. killed 17 people. News of this latest explosion sent gasoline trading up while the industry waits to see how long the plant will be offline.
It is the BP's largest plant and America's third largest, and processes 3 percent of the nation's daily crude oil supply. That is significant, say oil experts, especially with today's tight supplies.
"I suspect the market will wait and see how long this oil refinery is going to be shut down for maintenance," says Mr. Ebel. "We may need to turn to imports, but can we import enough to meet our needs, especially as we enter the summer driving season? All sorts of bad things could happen."
It's not about textbooks. Just about who can provide the solution.
The less the govt forces some command solution, the better off we'll be. That's proven fact, not just texbook theory.
I also don't believe that it is possible (nor desirable) for the govt to institute a new plan for eliminating rainy days.
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As far as consumption goes, any oil NOT used by the US will go to China or elsewhere. Whatever you do at your job (and I'm giving you credit here so don't get cranky) is a vastly more efficient use of that oil than if it is shipped to run some State Owned Enterprise in China.
The price is not just rising in the US, you know.
Well when stations are selling it for 6 bucks a gallon in Georgia when they were selling it two hours before for 2.50 that is price gouging. The local Bagwan that owns the gas station says that the gas prices are going up becuse of so many drive offs. what a crock of crap. So that means I should pay because people steal. I told him that since the price was frozen if I see it advertised for more than what he had it posted today for I was going to report him to the authorities.
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