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Politics : Politics for Pros- moderated
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To: LindyBill who wrote (155521)1/23/2006 1:59:18 PM
From: slacker711  Read Replies (2) of 793755
 
The attempts to distort the market for oil by the government are a restraint of free trade and social engineering. Neither one works well. The solution, IMO, is to stay out of the way and let the price mechanism work.

It absolutely is a market distortion and there is definitely an economic argument against them. Most of the time, the economic costs of introducing such a distortion outweigh the benefits....but I would never justify this on an economic basis.

What they would do is introduce a small inefficiency into our economy (as all taxes to do one extent or another). They would emphasize alternative energy creation before the free market would otherwise allow them to develop. There is a price to paid, and it can be debated whether it is worth it. However, Bush, the Republicans, and many people on this thread have talked about energy independence in the context of nuclear power or drilling in Alaska but for some reason it doesnt come up in debates about reducing our oil usage.

LB, I know you almost always come down on the side of free markets....but do you really believe that the cost of oil captures all of the various external costs? I just dont see how our 5 decade effort to keep the ME stable has ever shown up in the price of oil.

Slacker
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