• Rationing Oil?
    7 replies, posted
Hey Facepunch, do you think oil should be rationed? If oil was rationed, it wouldn't be to slow done the consumption of a finite resource. It would be done cheapen the price of oil. Ignoring other factors, price of oil is high because there is little of it and the demand is high. Just the law of supply and demand at work. But what if the government replaced the natural, high consumer demand for oil and an artificial, low demand for oil? You would still be able to get oil, but not as much and not as often. The advantage is that it's cheap. Of course, there would be lots of recognizable or unforeseen bad consequences of rationing oil. That's why there would need to be an extensive plan created by a panel of economists, politicians, and scientist that minimizes the cons while maximizing the pros. Perhaps there could be compromise. Oil would be rationed, but if you demand more, you will have to pay more money for more oil. That way, the price of oil doesn't change for everyone because of your demand.
Gas prices are rising because of how much we're paying per barrel to have it imported from places like the Middle East. That's not really a domestic issue.
There's this little magical thing called [b]Free Market[/b] Where this kinda stuff is optimally regulated by supply and demand through prices of equilibrium. Rationing is for communists and morons, IE morons.
What are you talking about? Things are rationed and regulated all the time in free market economies.
[QUOTE=Matix;29141477]What are you talking about? Things are rationed and regulated all the time in free market economies.[/QUOTE] Example? Regulated yes, rationed never, it's magnifically inefficient and distorting.
No. If you need gasoline, you need gasoline. When the prices start to really dramatically rise, people should still be able to buy gas if they need it, but they will also be making conscious decisions to not use much gas because it's expensive. It's a "natural" part of the economy.
[QUOTE=Jo The Shmo;29141517]No. If you need gasoline, you need gasoline. When the prices start to really dramatically rise, people should still be able to buy gas if they need it, but they will also be making conscious decisions to not use much gas because it's expensive. It's a "natural" part of the economy.[/QUOTE] Amen.
[QUOTE=Black Milano;29141508]Example? Regulated yes, rationed never, it's magnifically inefficient and distorting.[/QUOTE] Back in the 70's, water was rationed for most of Southern California for a few months. Gas, rubber, and numerous food products were rationed during WWII. Transplant organs are frequently rationed, as is blood. I shouldn't have said "all the time", but it happens. I agree that the economy will handle this naturally, though.
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