----- Original Message ----- 
From: "Nick Arnett" <[EMAIL PROTECTED]>
To: "Killer Bs Discussion" <[email protected]>
Sent: Friday, September 02, 2005 4:39 PM
Subject: Re: Gas Prices



>A rather different sort of ethics -- one that I greatly prefer than what I
>see as idolization of free market economics.

It's amazing to see people talking past each other when I think I can
clearly see what is being said both ways.  Let's look at gasoline supply.

After Katrina, the prices went up, because supply was disrupted.  The rise
in prices discourages demand, thus allowing most people who are willing to
pay a higher price to get gasoline, to obtain that gasoline as they need
it.

If prices do not go up.....and thus reduce demand, then some other
mechanism is needed to allocate gasoline.  When prices have been controlled
in the '70s, the results were long lines at the gas pumps....which actually
increased demand for several obvious reasons.  So, even though some people
will be hit hard by the increase in prices, I see allowing the market to
function as the least bad alternative we have.  The libertarian argument
for this is based on principals that markets are inherently more moral than
government intervention.  A truly conservative argument is that, for all of
its flaws, the market does a much better job of allocating gasoline in most
cases than does the government.

Dan M.

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