A Little Ray of Sunshine

Tuesday, September 13, 2005

I'm no economist, but this sure sounds stupid

I picked this up off of the forum at Claire Wolfe.

Sure, price caps work--if someone has no choice but to produce and to sell to you. Let's see. First off, if the companies don't want to make gas at that price, they don't have to. Second, China or someone else will likely be thrilled to buy that gas, at a little more than that price.


  • At 12:07 PM, September 21, 2005, Blogger Insert-Name-Here said…

    You are right. This is stupid.

    Price caps lead to shortages. Price caps + shortages lead to black markets in gasoline.

    Of course the NY congressperson does not mention the exhorbitant NY state gasoline taxes.


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