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 : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: gao seng who wrote (259518)	5/29/2002 7:14:22 PM
From: gao seng	Read Replies (2) \| Respond to of 769667

Don't blame Enron California's electricity crisis of 2000-2001 was brought about by misguided government policies, not corporate misconduct or market forces, according to a study by economist Benjamin Zycher, released yesterday by the San Francisco-based Pacific Research Institute. California Gov. Gray Davis, a Democrat up for re-election in November, blames Enron and other energy companies for the crisis. Other liberals have rushed to support the idea that government did nothing wrong — it was all the fault of greedy corporations that gouged the state and its residents. "For those willing to let economic realities speak for themselves, and to recognize the link between policies and consequences, the answers are readily apparent," Mr. Zycher said in his study, "Power to the People: An Economic Analysis of California's Electricity Crisis and Its Lessons for Legislators." "California's electricity crisis was entirely due to poorly designed public policies. Unfortunately, the issue has been surrounded with misperceptions and clouded by demagoguery," he said. "The retail rate freeze provided poor incentives for consumers to reduce their demand for power and the price ceiling imposed by California's Independent System Operator worsened supply difficulties," said Mr. Zycher, a senior fellow at the institute who served as senior staff economist with the President's Council of Economic Advisers during the first two years of the Reagan administration.