WHY is there government control on Natural Gas and Electricity pricing, but not gasoline?
Are we better off with afforable pricing since Ronald Reagan removed government control of gasoline pricing? Who is it favoring and why don’t they allow Natural Gas and Electric companies raise prices as they see fit?
October 31st, 2009 at 8:06 pm
Bush and Cheney – both pro oil.
Millions spent by the oil lobbies.
October 31st, 2009 at 8:06 pm
Sure what not go to 6 bucks a gallon like they are doing in Europe.
That makes great sense.
October 31st, 2009 at 8:06 pm
that’s a very good question! I’m against price controls for all things. as an aside, I see that "Just_Gone" couldn’t help but to blame Bush for something that even Clinton didn’t do anything about
October 31st, 2009 at 8:06 pm
Because those are utilities, which oil companies aren’t.
As a conservative, I have an issue with government asserting control over these things at all.
But often, huge industries actually seek government regulation because it tends to prevent competition and it ensures profit. I’ll bet you didn’t know that.
October 31st, 2009 at 8:06 pm
Good Question.
October 31st, 2009 at 8:06 pm
not only are bush and cheney pro oil… bush was and still is an oilman thats why he moved to texas…
October 31st, 2009 at 8:06 pm
"Gas & Water Socialism"
Early in the 20th Century, it became a popular idea that certain enterprises – like power and water distribution and telephone service – were ‘natural monopolies’ and were best either tightly regulated by the government, or outright nationalized.
That trend has become a widely held belief, a truism. (I pretty nearly believe it my self and I’m a neo-classicist.)
Furthermore, when the de-regulation of electricity was tried out in CA, it was implemented in such a byzantine way (the regulations, though they allowed some competition, actualy became more complex), that it was vulnerable to ruthless exploitation for profit. (Google ENRON for more.)
Thus, natural gas and electricity remain tightly regulated, while gasoline does not, and even though phone service has proven not to be a monopoly, natural or otherwise.
October 31st, 2009 at 8:06 pm
If we could produce all of our gasoline in the US then government controls would have a lot more meaning. But when we import most of our gasoline which is bought on the open world market any price controls we want to put on the oil would be ineffective. The price of gasoline can be manipulated buy the oil companies but buy and large the price is driven more my speculation on the dangers of the world by the futures market. The futures market can drive up the price based on fears but it has been proven that it avoids the downfalls of crisis.