Wednesday, November 09, 2005
Pounding on Big Oil
Many people enjoy pounding on "Big Oil" under any circumstance, and now that prices and therefore profits are rising, the sport has become extremely popular. The problem is that it makes us look like a Third World Country, and if Congress is foolish enough to act on the hysteria, we might do more than look like one.
In a market economy, prices are signals. The current high oil prices do two things: (1) they encourage conservation and (2) they encourage investment in energy production. These two phenomena tend to decrease demand and increase supply until the two come into balance again. All Congress or any of the rest of us can do is mess this dynamic up.
Let's leave well enough alone.
To reply, email texthepontificator at yahoo dot com.
In a market economy, prices are signals. The current high oil prices do two things: (1) they encourage conservation and (2) they encourage investment in energy production. These two phenomena tend to decrease demand and increase supply until the two come into balance again. All Congress or any of the rest of us can do is mess this dynamic up.
Let's leave well enough alone.
To reply, email texthepontificator at yahoo dot com.
// posted by Tex the Pontificator @ 11/09/2005 10:45:00 PM 
