Price Control and misery

It was bound to happen. Every thirty years or so, some politicians develop the need to institute price controls so that they feel good while their constituents suffer. While everybody knows that Hawaii has elected some of the most liberal and communistic legislators in the known universe, those elected were afraid that some people might no longer believe it. So they passed price controls on gasoline!

In an effort to gain some control over what motorists pay at the pump, Hawaii on Wednesday became the first state in the U.S. to set caps on the wholesale price of gasoline.

Never mind that the entirety of human history teaches us that anytime the price of good sold becomes unrelated to the increasing cost of that good, the supply of that good dries up. When the price equals the supply cost, no profit is to be made and without profit, there is no motive for anyone to be in the business. And before we declare that only non-profits and government should be in the oil business; let’s recall the destitute nature of the other communistic economies USSR and China, who have the worst environmental record in modern times and who furthermore, have some of the least developed natural resources within their own border.

But back to Hawaii
This in from the Milkin Institute: "Hawaii is the most expensive state to do business in". Denying businesses the opportunity for profit only reduces their return on the assets they have. If they don’t make enough return on those assets, they will reduce or eliminate those operations. It’s not that Communism and Socialism didn’t work because the eastern (China and Russia) didn’t know how to do it; it failed because Communism and Socialism are inherently evil and failed economic systems. They didn’t work there, they aren’t going to work in Hawaii.