A stupidity that crosses political boundariesIn the midst of the impact of Katrina and Rita, as gasoline prices rose dramatically, I recall reports of a 'study' in Canada that purported to map per-barrel crude oil prices to corresponding 'just' gasoline prices (the word 'just' was not used but there was a pretence of science, to mask the reality that it is exactly someone's (silly, in my view) notion of 'just' that was being discussed).
I never bothered to find or investigate this study, as its premiss was so laughable. Now I had expected those who view themselves on the 'left' to take these notions seriously.
But things are worse than that. Heavens to Betsy it seems even Drudge falls into the trap. Russell Roberts delivers the education really well.
There's no understanding of the role of high prices in motivating beneficial behavior on both sides of the market--for consumers to find ways to get by with less gasoline and for oil companies to be motivated to find and bring more oil to the market. Economists of the world, unite! Help the world understand the role of prices.I said it in an earlier post - I will conserve when I see higher prices. And I know they will encourage someone to bring me what I am willing to pay more for.