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Canadians: Economic Nitwits?

I'ld like to think that the average Canadian has a reasonable understanding of economics. Perhaps that has always been wishful thinking but today's poll at The Globe And Mail proves me wrong.

According to the poll, over 60% of respondents thought that the government should regulate the price of gas.

Oh really.

So if the government regulates the price of gas below market cost who exactly do these people think is going to sell them the gas they need?

Or put another way, would you continue to run a business where you were forced to charge consumers less for your product than the price you paid for it? If you answered yes to this question I'd suggest you submit your name to all the banks so that you can be placed on the "don't ever give this idiot a business loan" list.


Anonymous said...

I hope it isnt all Canadians that exhibit that type of intelligence. I think maybe its just readers of the Glob & Maul.

Livin' the blues said...

These comments are right on. No government can suspend the laws of supply and demand for long.

Anonymous said...

Don't worry folks, no government agency will make Paul's buddies lose money. Regulation might control the price gouging that's happening now. Ithas nothing to do with supply & demand and all to do an opportunity to add to the offshore banks.

Anonymous said...

It's odd how one of the industries with the most competition, the lowest profit margins and the most volatile supply is the one which people are utterly convinced is manipulated by cartels.

"Paul's buddies" are mostly interested in seeing the price manipulated upwards through tax increases, not through oil company profits. Because tax money can be controlled 100% if you control the government - without any risk or major capital investment required - but oil company profits only come if you invest large amounts of money and take on a lot of risk, and they must be shared among many thousands of private investors. And governments are not subject to any competition whatsover within their jurisdictions, whereas oil companies always have to worry about being undercut if they try to charge too much.