One of the key distinctions between those on the left and those on the right is the acknowledgement of market forces by the latter and the belief that the market can be managed efficiently by government by the former.
If the government truly could make markets a idyllic nirvana, then why would politicians not make beautiful homes available for all, abundant health care for everyone, and a later model attractive vehicle in everyone's triple garage, while we're at it?
They don't do it because they can't do it. Markets essentially manage themselves - assuming, of course, that they are not being artificially manipulated.
And that thought leads us to the link of the evening: Charles Krauthammer's column. As is so often the case, Krauthammer nails the issues dead on when it comes to oil. Demand is up, supply is down, and byzantine laws about "bouquets" and additives abound. Ergo - prices are up. You'd think that a rudimentary knowledge of economics would cause most to understand these principles, and yet ... from all sorts of quarters, we are hearing discussion of "investigations of price gouging," "rebates for gasoline" and other such idiocies.
Oil will become cheaper when - and if - market conditions are changed. Until then, all the investigations in the world will turn up nothing more than what Krauthammer states so well in his column.
But it provides entertainment and exposure for the politicians to investigate what is already known. It also plays into the victimhood idea--we are victims of corporate greed. Sadly there will always be a large number of people who will believe what they want to hear, not what it necessarily true.
Posted by: Bill | Friday, April 28, 2006 at 08:51 AM