Price Gouging, But Not Where You’d Expect
July 17th, 2006 at 12:59 pm
July 17th, 2006 at 12:59 pm
The American Spectator has an interesting article that outlines how Big Business and government can actually be quite friendly—to our disadvantage.
Clearly, ethanol is no magic potion, otherwise why would it need government supports? The special tax breaks amounting to about 52 cents per gallon have given ethanol an advantage over other fuels for decades. The federal protectionist trade policies keeping out foreign ethanol destroy any claim by politicians that our government is encouraging ethanol use for the environment. Nowadays, the federal government is mandating we use ethanol. Now that’s a business model to emulate: make something useless, but make it illegal for people not to buy it.
The article also details how UNOCAL worked with California regulators to require refinery regulations using a process UNOCAL had patented.
CARB’s action, then, drove smaller refiners out of business, costing jobs. CARB also drove up the price of gasoline in California. This is clearly bad for “business” but good for one business, Unocal, who still collects that 5.75 cents per gallon from California drivers even though it has quit the refining business.

July 18th, 2006 at 9:20 am
I love the internet for getting alternate voices and stories we might not hear otherwise. Now how to solve the problems?
July 18th, 2006 at 1:34 pm
How to solve the problem depends on how you define the problem. If the “problem” is that we don’t have the cheapest fuel possible, then we need government to remove tariffs, subsidies, regulations, and other impediments of market behavior.
July 18th, 2006 at 6:18 pm
I meant the problems caused by the government intruding itself into everything.
July 18th, 2006 at 8:00 pm
[...] quae didicisti et credita « Frist: Embryonic Stem Cell a Moral and Ethical Boundary Book Report: The Constitution in Exile by Andrew Napolitano July 18th, 2006 at 7:56 pm Barb the Evil Genius’s comment is quite timely considering thatI’ve just finished the second book written by Judge Andrew P. Napolitano, The Constitution in Exile: How the Federal Government has Seized Power by Rewriting the Supreme Law of the Land. [...]