July 23, 2005
Gas Lines Return
If you live in Hawaii, get ready for gas lines. It seems Hawaii politicians
don't like the free market, so they're going with price caps on fuel. The only possible conclusion of price caps will be shortages.
It's simple economics. Let's say you make widgets. It costs you $15 to make them and you sell them for $20. For each one you sell, you earn $5. Enter government. If government declares that there is a price cap on widgets and you cannot sell them for more than $12, what do you do?
If you continue to sell them, you LOSE money on every sale. So you either stop selling them or go out of business. Gas companies will simply stop selling gas in Hawaii. So what will the politicians do then? They will have a choice -- get rid of the price cap that caused the problem, or start selling gas themselves. I wonder which they'll pick?
Posted by: Ogre at
08:02 AM
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1
Oh! I know, I know! I know which one they'll pick!
Posted by: Jay at July 23, 2005 02:46 PM (BKqRl)
2
*sigh* price caps are never the way to go. The market will always settle itself even without outside interference. Don't people know that?!
Posted by: Just Mitch at July 23, 2005 04:15 PM (u28/Q)
3
Lucky that cars can't take you where you want to go on Hawaii...(like to another Island) (^_^)
But, you can always buy a diesel (Mercedes is nice) and go to the boat docks for diesel 101.
Posted by: mensaB at July 23, 2005 04:24 PM (TOHVc)
4
I can't tell anymore which politicians do not understand the free market and which ones simply despise it. Either way, the result is the same. In a way, I hope Hawaii DOES take gas and make it run by the government. Then everyone else can see how BAD such an idea really is.
Posted by: Ogre at July 23, 2005 06:50 PM (L0IGK)
5
C'mon Ogre, you know better than that!!! Yes, if the government starts selling gas it WILL be a disaster, but everyone else will NOT see how bad of an idea it is. The most liberal parts of the coutry will think it's a great idea and it will spread.
Just look at European style socialized medicine. The worse it gets, the more the left wants it here.
Posted by: Echo Zoe at July 25, 2005 10:09 AM (K+h36)
6
Well...that's why I want them to test it in Hawaii -- it would take awhile to catch on in the continental US, and it will hopefully collapse before anyone past CA tries it...I can hope, right?
Then again, it may be like Atlas Shrugs, wherein it's going to take a total collapse before freedom is actually tried again in this country.
Posted by: Ogre at July 25, 2005 10:30 AM (/k+l4)
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