Thursday, April 13, 2006

Is there really an alternative to price gouging?

The howls from people complaining about higher petrol prices around easter are getting very annoying. If there is an increased demand prices will go up. The alternatives may always involve either queues, rationing, or high and/or highly unpredictable public finance cost. The only exception is when there is supply side collusion where there are no obvious other supply/demand constraints. Why is there not an outcry with highly fluctuating fruit/vege prices? Is anyone complaining about the extremely high profits being made by some lucky banana farmers in Mareeba?

1 comment:

Dr. Clam said...

Hooray for rising petrol prices! Rising petrol prices are a much better engine to drive the development of sustainable energy resources than nasty coercive regulation or evil market-distorting subsidies: rising prices focus pressure precisely where it is most needed, while government intervention spreads the burden with majestic impartiality over the just and the unjust alike...

'The rain it falleth on the just, and also on the unjust fellow;
But chiefly on the just, because, the unjust steals the just's umbrella.'

And, I am doing the responsible thing what you told me to, and reading the Skeptical Environmentalist. This means that sooner or later I will have to go to the trouble of constructing a great big post pointing out the errors in sites pointing out the errors in discussions of Bjorn's pointing out the errors in speeches of Al Gore's... Curses!