The Violation We Deserve
As to gas prices, George Will says we're getting what we deserve. True indeed. Typical of Will, he adds a nice bookish touch quoting Mencken. Call me de classe, but I think Dr. Phil is more apt.
posted by Donny Baseball at 9:53 AM
2 Comments:
I think it is well known in the econ literature that when demand out paces supply, price should rise steadily, not parabolic. this means drilling in ANWR or other means to increase the supply of oil won't cure today's high oil price, in my opinion. something more sinister is at work and it shows up in oil and gold prices. it's going to be nasty.
there is also speculation and dollar weakness as contributing factors no doubt about it - note that an Israeli cabinet minister said today that Israel might bomb Iran. But a market where supply was more flexible and able to react would make these extra factors marginal influences at best. As it is, they are not marginal, they are significant, precisely because supply is highly constrained by bad US policy.
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