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Why not put a reasonable price ceiling on gasoline?

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10 Posted

Why not put a reasonable price ceiling on gasoline?

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10

Learn economics. Price ceilings never, ever work. Just read about rent control apartments in New York. People practically kill one another for a rent controlled apartment. Why? Because they understand the true value of that apartment and know they’re getting a bargain. Translate that to gas. If people know they’re getting a deal, they’ll consume even more gas than before. Supply will dry up, because oil does cost money, no matter what you believe, and the oil companies will have no incentive to produce it. They’ll use that crude to produce other petroleum products, instead. What does that mean? It means that the gap between supply and demand will grow even wider until gas is worth $20 a gallon and the whole thing collapses under its own weight. Let the market decide the value of gasoline, as it already does. There is no better model than the world market, it’s been proven time and time again… As for refineries, it takes about 10 years to put a refinery into service. It takes 2-3 year

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