Basic economics says that when government restricts the supply of a good, the price will increase. Yet Congress continues to reject simple measures that could increase the supply of oil. For example, Congress refuses to allow reasonable, environmentally sensitive, offshore drilling. Congress also refuses to remove the numerous regulatory hurdles that add to the prohibitively expensive task of constructing new refineries. Building a new refinery requires billions of dollars in capital investment. It can take several years just to obtain the necessary federal permits. Even after the permits are obtained, construction of a refinery may still be delayed or even halted by frivolous lawsuits. It is no wonder that there has not been a new refinery constructed in the United States since 1976.
Monday, May 05, 2008
Big Government Responsible for High Gas Prices
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4 comments:
But is it a good idea to continue to draw out this ultimately unsustainable way of life? Wouldn't it be better to hope for leadership that owns up to the futility and backwardness of things like the gas tax holiday and Arctic oil wells? Where do Libertarian-types stand on environmental issues?
I'm not saying that there's a lot of hope for leadership like that on the national level at the moment (Gravel would have provided some fireworks in that regard, but alas...), but it's a nice thought.
John K. says: Uh Ron Paul also is against all that off shore drilling and ANWR stuff.
Huh? That's not what the linked article, nor this, leads me to believe.
Jake, that John K is all twisted.
Ignore him. He is a sink and waste of time.
He is clueless and types too much.
Generally, everything he posts is wrong. He would be great on opposite day.
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