Posted on 09/08/2005 7:08:08 PM PDT by rockrr
When Rudyard Kipling said it was a great virtue "if you can keep your head when all about you are losing theirs and blaming it on you," he was not thinking of Sen. Maria Cantwell, a Democrat from Washington. This week, as gasoline prices remained above $3 a gallon, she proposed giving the president the power to tell retailers what they can charge at the pump.
A lot of people grew anxious seeing long lines forming last week, as motorists rushed to fill their tanks in the aftermath of Hurricane Katrina. But Cantwell apparently enjoyed the sight well enough that she'd like to make those lines a permanent feature of the landscape. If so, she has the right approach. The government does many things badly, but one thing it knows how to do is create shortages through the vigorous use of price controls.
That's what it did in the oil market in 1979-80, under President Jimmy Carter. He was replaced by Ronald Reagan, who lifted price caps on gas and thus not only banished shortages but brought about an era of low prices.
(Excerpt) Read more at chicagotribune.com ...
I've been reading lots of articles here about the evils of price controls. This is good news too. To paraphrase Gordon Gekko, "Gouging is good."
It won't be long before the Whiners show up and start complaining about the evil oil companies who randomly jack up prices (yet for some unexplained reason allowed them to fall for the last two days).
Those that can, do. Those that cannot, become democrats and occupy a Senate seat in NY or MA.
I don't notice idiot Cantwell mentioning the recent Washington State gas tax increase of 5 cents a gallon. How about state Governors follow the example of Mississippi?
I don't notice idiot Cantwell mentioning the recent Washington State gas tax increase of 5 cents a gallon. How about state Governors follow the example of Mississippi?
Any update on how price controls at the wholsale level are working in Hawaii?
Actually I believe it was nine cents, not five... and there's an initiative going to be on the ballot in November to repeal it.
Sweeeeet. :-)
Consumers who rushed to fill their tanks were making the wrong decision, imo.
They should half-fill their tanks.
Then, when they find the lowest-priced gasoline they should take that little bit of extra time to pull over and top off.
Pick the best price OR only a half of a sale. It sends a double economics message.
What idiots.
If you don't use that as a tagline, I'm going to steal it. LOL
I, apparently unlike Nagin or Blanco, foresaw the impact that the hurricane would have, and filled up all my vehicles' tanks on Saturday morning, at $2.73 per gallon, instead of two or three days later at $3.45 a gallon.
Yep. At that time, me too.
Now calls for a different strategy. How are you handling it?
I've been driving the last three days in western Kansas and Eastern Colorado, and saw something I haven't seen for years --- the rebirth of the oil industry there.
These aren't your Saudi/Texas style gushers, they are mom-and-pop low-to-mid yeild stripper wells, plinking along at a few barrels a day. At $30-a-barrel prices, it's barely economical to run them at all, so you rarely saw even half of them in action.
Now, with oil at $50 or $60, I estimated 80 to 90 percent of the wells pumping. I even saw several drilling rigs sinking new wells, a welcome sight in an area where population is shrinking and half of every town's windows are boarded up.
Not only is the Hawaii law stupid, it doesn't work.
Before the law took effect September 1 gas was about $2.76 a gallon for regular on Oahu.
The Honolulu Star Bulletin reported today that the "capped" price for gas is predicted to go to $3.62 a gallon by Monday. http://starbulletin.com/2005/09/08/news/index3.html
That is more increase in prices in two weeks than probably the prior two years before the law took effect.
The irony. The formula for the "cap," in order to make sure we don't get screwed by the "big oil companies" and pay more than you lucky people on the Mainland, is tied to the prices of four regional U.S. markets, including Louisiana/Gulf Coast!
But our oil doesn't even come from the U.S. The vast majority comes from Indonesia!
The oil companies are laughing all the way to the bank. And our government now has the gall to plead with them to be "fair" and not raise their prices all the way to the top of the cap even if they have the legal right to do so.
Imagine if you owned a gas station and bought a more gasoline three of four days ago. You might have to sell that gasoline for less than the wholesale price you paid. Ever wonder why they're quick to raise prices?
Thanks. I didn't know how they figured the formula. Worse than I thought.
Ah that would be me. I am "Big Oil" Since one of my 401k Funds and my pension fund have investments in Oil Stocks. Sorry everyone. My bad. I will fix it Monday when I get back to work ok?
Yep heard the same about Western North Dakota. Their biggest problem is they got hardly any workers anymore. Basic Supply and Demand. More demand, price goes up, more suppliers enter market. NOW if we can just figure a way to keep the cheap foreign oil out. I am a small Govt guy but man I wish we could slap a tariff on imported oil. Find a away to become energy independent at an economically viable price and we can tell the Mid East to eat sand. That would be a sweet day to see.
Nor did she say anything when her Democrats in WA voted against a temporary repeal of the gas tax proposed by WA Republicans.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.