Anyone familiar with modern politics knows that Republicans and Democrats regularly vie with each other to see who can be more economically illiterate. But it seems that with some newly proposed legislation, Democrats are determined to take the lead and cripple the US oil industry permanently. FULL ARTICLE
Source link: http://archive.mises.org/8222/the-oil-follies/
The Oil Follies
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Anyone familiar with modern politics knows that Republicans and Democrats regularly vie with each other to see who can be more economically illiterate.
I tend to think that this phenomenon is more a result of malice than mere illiteracy.
These economic falsehoods are just too consistent, too politically-expedient to be the product of stupidity.
I agree that the the salesmanship, the rhetoric, the propaganda are designed to appeal to the public’s economic illiteracy, of course. But I suspect that the politicians know better. Or, at least the people who pull the politicians’ strings know better.
One aphorism tells us that we should not ascribe to malice what can be explained by stupidity. But another tells us that a person is presumed to intend the natural, foreseeable and inevitable consequences of his actions.
If it were a one-time or even occasional error, I might accept the proposition that politicians are economically illiterate. But not when they commit the same crimes, generation after generation, for centuries.
The proposals of both parties give the same result: increasing government control over the economy and lives of the citizens. Given that politicians and bureaucrats above all desire ever increasing power, I am inclined to think that most of their economic errors are deliberate and not the result of well-intentioned illiteracy.
Excellent article.
What is interesting, with all the political posturing going on, is that everyone is focused on gasoline only, and that “we can’t drill our way out of the problem” so we need “oil companies to invest in alternative energy” and “nationalize oil refineries”.
However, gasoline only accounts for about half of our oil consumption. Oil is used for plastics, fertilizer, shampoo and a host of other products. This can not be replaced by wind farms and solar panels.
“Destroyed the American economy and replaced it with something that was thought to have left the world well the Iron Curtain fell”.
Agreed – that is the intention of the left.
They have not changed and their control of education (both schools and universities) has grown stronger, not weaker, over the last few decades.
The word “Maxism” or even “socialism” is not used – but (as Ludwig Von Mises often pointed out) the principles can be taught without ever using those words.
Sometimes they are taught by people who do not know what they are doing (for they have been misled, in their turn, by their own education), but the leaders of the left know exactly what it is they are spreading.
And one of the spiritual children of Saul Alinsky looks likely to soon be President of the United States.
It will not be like the 1930′s with first the “Brains Trust” and then people like Harry Hopkins spoke into F.D.R.’s ear.
No – now the left will not need “influence” for they will directly control the seats of power. Both the office of President and the Congress.
In other words, the cited poll demonstrates that the retail price is to low. People are willing to pay more as long as it is conveniently available.
“Meanwhile, Congress has been stopped in an attempt to create the very thing that motorists fear most. Among the things that were in the bill that has been successfully filibustered by the Republicans:”.
Are the Republicans being appluaded for stopping the bill on the assumption that they represent Free Market Capitalism? Every single one of them is out to laud, sing and promote the benevolence of Democracy a.k.a. Socialism. They wouldn’t know a Republic/Republicanism if it fell on top of them.
EnEm: “Are the Republicans being appluaded for stopping the bill on the assumption that they represent Free Market Capitalism? “
No. They are to be appluaded for stopping the bill on the assumption that the bill will be stopped.
Just because they are doing the right thing this one time doesn’t make them paragons of Capitalism. No one is claiming otherwise.
Billwald,
In other words, the cited poll demonstrates that the retail price is to low. People are willing to pay more as long as it is conveniently available.
The price is exactly where it should be, considering it is set up by market forces. The polls have nothing to do with the price itself, but rather about pricing a person’s time.
“The price is exactly where it should be, considering it is set up by market forces.”
Ahhh…but is it? The overall energy sector is cartelized and heavily regulated. It’s not like anyone who has raised the necessary capital can just set up shop and drill for oil. They first have to do a whole bunch of songs and dances to acquire a lease from Uncle Sam, who apparently thinks the whole Earth is his own personal property. And Uncle grants them leases to his best buddies, first and foremost.
And the banking cartel’s massive inflation of the money supply over the past several years has bid up the price oil as much as anything else.
I would call those things [i]force[/i] before I would refer to them as “market forces.”
The author laments that the Republican congress did not form a better energy policy when it had a chance. A Ron Paul solution would be to reject formulation of an energy policy ON PRINCIPLE and let the free market work. Dr. A. Lovins, the world’s leading energy expert who makes recommendations based on practical experience has come to the conclusion that total deregulation is all that is needed. Congress’ insane obsession with controlling everything and everyone will destroy us if not stopped by public opinion.
There are more free market forces at work when buying and selling cigarettes in a prison, than there are in the oil industry. Deregulation is absolutely what is needed. But what is needed and what is wanted are as we all know; two very different things. The lives of the American people are now governed by just a handful of corporations, with the power of the government behind them. Remember, the best type of control is “indirect”, because it keeps your hands clean and accomplishes the same.
Deus:
Could it be time to “force Congress to stop using force” and let “us” (the market) work our magic? But that would require a confidence in Capitalism not found in our culture because it is not taught in public school. A quick lesson could be taught by an Austrian economist if he could get air time. That would require an unbiased, uncontrolled media. So what now?
“The oil Follies” indeed. Hi oil prices and consequently higher other prices could not happen if not first driven by the increase of the money supply no matter how one calculates that.
No one is pointing a finger at the tremendous costs of the wars, costs in lives and squandering of labor and commodities. The payments had been postponed but no longer. Pointing the fingers at the Chinese and Indians is obfuscating the source of the problem: Washington.
What ‘other prices’ Matt? Other than the price of fuel and price rises in some foods, what are the ‘other prices’? When I look around at the prices of most things they are pretty where they were a year, if not a tad cheaper for some goods.
TLWP Sam:
For “other prices” see http://www.bls.gov/cpi/ Friday June 13 2008.
All prices except Apparel are up significantly. Energy up 17%. Transportation up 8.1% year over year.
The main point though is that IF Energy prices should they stay anywhere near where they are now they
will drive up “other” prices except houses. It should also be remembered that government statistical numbers are probably fudged.
Don Duncan said: “So what now?”
That’s the $64,000 conundrum, isn’t it? That’s the work we Austro-libertarians have carved out for us: To persuade the masses of the moral sense of truly free markets, not this heavily state-regulated monstrosity under which we now toil. I don’t have an easy answer as to how to achieve that, but there have been various endeavors under way for years, i.e., Mises Institute, to accomplish that goal.
Unfortunately, I think ours is a very long term project, perhaps even a multi-generational one.
TLWP Sam:
Obviously I have no idea where you dwell, but here in the Midwest the prices of everything has been pretty much climbing up and up and up in recent years.
Why does William Anderson always get the cutest graphics?
I would like to get a closeup of that show girl so I could rub some oil on her. That would be no folly.
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