Price control and misery II

Also known as the Windfall Profits Tax rises again.

As if we didn't share enough misery in the 1970's edition: Bills are now being introduced to institute yet another bill that should more accurately be called the "how to create a shortage of gas" Act.

Congress has been busiest of all, conducting hearings, holding news conferences and drafting legislation. One bill being written by Sen. Maria Cantwell, D-Wash., would make price gouging a federal offense and heavily fine violators. Another bill to be introduced in the House will call for increased fuel efficiency, and still another, to be introduced in both houses, would impose a windfall profit tax on oil companies.

The last time we did this we ended up with wonderfully long oil lines, chronic shortages and no incentives for anybody to expand production or capacity since any profits would be grabbed by the governments.

Artificially restricting the law of supply and demand guarantees misery. For those of you who either forgot what PRICE is: price is the value that someone is willing to pay for what it is that you're selling. There are not a few socialist types that believe that price should equal the cost plus a reasonable profit. But this ignores the value of risk, and the realities of life. If the price is too high - nobody will buy. If the price is too low, you will sell out and nobody will be able to buy at any price. Except of course those for those black marketeers who always seem to find those things in short supply - and pay no taxes at all.

It matters not whether the artificial restrictions are voluntary ( like Bill O'Reily advocates), or mandated, as these bills would do. The end effect is the same, not enough supply and too much demand - long lines and shortages.

After two gas stations that had no gas, I was more than happy to pay $.40 more per gallon than I did the week before to HAVE gas so I could get to work. Absent the 40 cent price hike, I'm not so sure that the gas would have been there when I needed it. People were going crazy and the supply was rapidly shrinking.

As anyone over 40 will remember, long gas lines were not fun, not an inconvenience, but a tragedy. A tragety forced upon the populus by an unscrupulous politicians more interested in their own globalistic agenda than the prosperity of the people they were elected to serve.

Human nature will always come out - save by the grace and peace of our LORD. Expecting otherwise, especially from elected officials, is at best; problematic. Giving anyone control over the market is a power too great for most sane men to stand - let alone anyone willing to run for "public" office.