Politics of Energy Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Politics of Energy

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: The Vet who wrote (7551)	4/26/2009 7:28:11 PM
From: RetiredNow	Read Replies (2) of 86356

Actually, it's the application of modern economics, which is the attempt to ensure externalities are priced in. If a product has negative impacts on other parts of the economy and those negative impacts are not priced into the product, then that product is artificially under-priced. You could be making money on the product, but the economy as a whole could be suffering, because more money is spent dealing with the externalities than the profit made on the product. It's Econ 101. Oil is like that. We get great benefits from a cheap oil and gas price, but then we spend $600B in a year in military to ensure our military domination around the world so we can secure our oil supplies. That's a simplification of course, but in the face of $1 trillion in Iraq war costs, we need to understand that securing our oil supplies is not longer a trivial expense and it needs to be priced into retail oil and gas in this country so that other substitutes can be compete properly, so that the economic gravitates to the energy sources that make most sense to grow the overall pie. Again. Econ 101.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next