Monday, August 09, 2004

Oil price regulation.

Whenever I hear those demonstrators call for scrapping the oil
deregulation law I can only shake my head. I think they are only
mouthing those lines without really understanding them.

To scrap the oil deregulation law means to give back to government the
power to set the oil prices.

There is only one answer to those who clamor for government control
over oil price or on any price: it will never work as envisioned. They
been there, done that in the USSR and other countries with centrally
planned economies.

The simple reason is that government is inefficient in virtually all
its workings. Bureaucrats who make bad decisions do not lose their
jobs. So they go on making worse decisions.