Some legislators just don’t get it.
Price controls, like in the case of the legislators attempting to control the price of gasoline by imposing a cap on the wholesale price beginning Sept. 1, 2005, always distort the market.
See “Public Utilities Commission Warns Gas Caps May Hurt the State”
Price caps lead to shortages or lower quality goods or services.
It is hardly surprising that government meddling may now lead to higher gas prices, according to a recent report by the Public Utilities Commission. “Unintended consequences” as usual.
Adam Smith discovered over 200 years ago: Government regulation of the natural market place always harms consumers, directly in proportion to the degree of interference.
Recall the Carter administration’s gasoline allocation mismanagement of the 1970s: surpluses and shortages across county boundaries, odd/even days and long lines.
It sure would be nice if the legislators and former governor who supported price caps were to demonstrate a basic understanding of Economics 101 as a pre-requisite for electoral candidacy.
Lord, spare us from the good intentions of know-nothings.
”’John M. Corboy, MD, a resident of Mililani, Hawaii, and a board member of the Grassroot Institute of Hawaii, can be reached via email at”’ mailto:JCorboy@aol.com
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