Silicon Investor (SI) -- The First Internet Community

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 : Electoral College 2000 - Ahead of the Curve -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (6213)	12/14/2000 8:16:24 AM
From: Mama Bear	Read Replies (1) \| Respond to of 6710

California's energy crisis has more to do with gov't interference in free market supply and demand. To blame capitalism when the industry which is showing unnatural price abberations is heavily hamstrung by the state gov't is ludicrous. Regards, Barb

To: Raymond Duray who wrote (6213)	12/14/2000 9:40:40 AM
From: The Philosopher	Read Replies (2) \| Respond to of 6710

While this may be simplistic, because I really haven't studied the Calif energy situation in detail, I think the problem is not capitalism but a bad process of transition from socialism to capitalism in the energy market. It takes many years to bring a power plant on line, what with forecasting the need, design, getting planning permission if you can ever get it (several years at least overcoming NIMBY arguments--everybody wants their Christmas lights in their front yard but nobody wants the plant that makes the power to keep those lights lit in their back yard), arranging financing, construction, passing government tests, getting final approval, and coming on line. When Calif went through the process of partial deregulation there were years of uncertainty during which nobody was preprared to make the investment in new plants not knowing what the economic environment would be. So capitalism hasn't had a chance to work yet. If the market had always been capitalistic, this wouldn't have happened. Of if they hadn't tried a half-assed poorly planned transition from socialism to capitalism. But you can't blame capitalism for this mess. Capitalism is a process, not a product, and the process hasn't worked through the system yet. In ten years (assuming the government doesn't put so many roadblocks in the way of new plants that they become impossible to build) I think we'll see a very different result. Not that it's any help now. But I think you're complaining at the wrong door.