Opinari.net
Opinari - Latin term for Opinion. Opinari.net is just what it seems: a cornucopia of rants, raves and poignant soliloquy. |
Tuesday, February 20, 2007
Want a good case against government intervention in the marketplace? Here’s a part of a story from Iran (via the Wall Street Journal) regarding the consumption of gasoline and oil in the Middle Eastern country:
(S)ubsidies make energy practically free in Iran, discouraging any serious energy conservation. Gasoline, for example, costs about 40 cents a gallon at the pump. That's encouraged an explosion of use, as Iranians add new cars while continuing to use fuel-guzzling old models. It has also encouraged a brisk smuggling trade as Iranians buy millions of gallons of fuel at the subsidized price and truck them into neighboring Pakistan, Turkey, Afghanistan and Iraq for sale at market rates.
When politicians start talking about windfall profits taxes, price controls, subsidies, etc., this is the type of outcome that often happens, but politicians won’t discuss publicly.
.: posted by
Dave
12:11 PM
| |
Recommended Reading
|
