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To: jriemer
Most people wouldn't get it unless explained in really simple terms.

The bottomline is that the higher prices encourage conservation (reduce demand). We could "cap" the prices, but only if these people didn't want any natural gas to heat with at all. (Price caps = shortage, every time)

6 posted on 01/14/2003 6:25:19 AM PST by MrB
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To: MrB
Most people wouldn't get it unless explained in really simple terms.

The bottomline is that the higher prices encourage conservation (reduce demand). We could "cap" the prices, but only if these people didn't want any natural gas to heat with at all. (Price caps = shortage, every time)

True. I am very wary of any one who wants to tinker with the mechanics of supply and demand whether it is "for the greater good" or their own personal gain. We have drifted far afield from the days of Adam Smith's Invisible Hand where a true, unfettered market can exist. A open and free market provides the incentive to supply more goods to the economy when more are needed and less when there is a glut without a hint of centralized planning - a fact not lost upon our socialist and communist brethren.

jriemer

8 posted on 01/14/2003 6:41:41 AM PST by jriemer
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