Obamacare, as I have pointed out here and here, is a perfect storm of bad ideas. It is, however, downright sensible compared to his plan to address high gasoline prices. Here’s Don Boudreaux at Cafe Hayek:
Barack Obama proposes to deal with rising gasoline prices by giving a $1,000 “emergency rebate” to consumers - a rebate to be paid for by taxing the so-called “windfall profits” of oil producers.
If it isn’t obvious why this is an extraordinarily dumb idea, Boudreaux explains:
This plan - which increases the demand for gasoline and reduces its supply - makes as much sense as trying to put out a fire by dowsing it with jet fuel.
That Obama’s plan will result in higher gas prices may not matter, however, because his plan to impose health care mandates on businesses will eliminate many of the jobs to which people now drive their cars.
Comments 2
But Big Oil is evil! Maybe Obama’s expensive health care plan will include a massive tax on the equally-as-evil Big Pharma’s profits too. One can only cross one’s fingers and hope.
Econ 101: To reduce a price on a scarce item, increase the supply (DRILLLLLL!), make the item cheaper to bring to market (eg don’t tax those to Hell who are making it as you said), and/or reduction in the demand for the item relative to supply (reduce gas consumption)…
Posted 04 Aug 2008 at 2:24 pm ¶“Econ 101: To reduce a price on a scarce item, increase the supply”
Sadly, very few of the Obamaciples appear to have taken Econ 101. Let’s hope the electorate as a whole isn’t so clueless.
Posted 04 Aug 2008 at 9:19 pm ¶Post a Comment