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Monday, November 14, 2005

Regulate Gas Prices And Let The Free Market Reign?

You have to read (or not) Charles Krauthammer for a proposal that claims to recognize supply an demand: Make gas prices have $3 per gallon ceiling regardless of the retail price and send $1 or whatever is the difference to the Treasury. Or something like that.

Great quote from him:

"The beauty of a gas tax at $3 is that it obviates the waste and folly of an army of bureaucrats telling auto companies what cars in which fleets need to meet what arbitrary standards of fuel efficiency. Abolish all the regulations and let the market decide. Consumers are not stupid. Within weeks of Katrina, SUV sales were already in decline and hybrids were flying off the lots."

While he is suggesting price controls and money sent to Treasury earmearked for incentives for automakers and alternative fuel providers, he thinks he is letting "the market decide". Even really smart guys have blind spots. Sometimes there are columns (and posts) that should never have been published.

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