Thursday, May 04, 2006

More Idiocy From U.S. Politicans On Energy Prices

The U.S. House of Representatives voted with a majority of 389 to 34 (Ron Paul was of course one of these 34) to outlaw "price gouging" of energy products. What is really funny about this legislation is that these congressmen in this legislation instructs the Federal Trade Comission to define "price gouging". That's right, these 389 congressmen voted to outlawing something they don't even know what it is.

Any honest and intelligent observer would agree that high energy prices is not due to "gouging" (however that is defined), but global supply and demand. And that policies from the U.S. federal government (including bans on drilling in Alaska, failed Mideast war policies, a pork-laden energy bill and punitive import tariffs on cheap Brazilian ethanol) have contributed to reducing supply and therefore to raise prices. But of course, we can't expect politicians (except for Ron Paul and a few others) to recognice facts, particularly not facts that indict government interventions. It is so much easier in the short-term perspective to blame "greedy oil companies". That won't solve the problems of course, but it is more beneficial for the politicans who can turn another one of their failures into something which expands their power.


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