Friday, June 15, 2007

Great argument for why the government ought to stay out of your and my business

Greg Mankiw's Blog: A Veto Threat

Furthermore, they should stay out of business. Price gouging. The only price gougers with respect to gasoline are the oil companies. They control the supply.

Gas station owners don't. My grandparents were service station owners back in the late 60s, early 70s. They got out during the first oil embargo. Why? They made no money when prices rose (supply costs went up way faster than they could raise their prices).

Now the government wants to control price increases. Nixon tried this in during the early 70s and called in price caps. In any event, the government knows nothing about business. Therefore, they should keep away from it.