Tuesday, May 06, 2008

Leave OPEC alone!

I agree with Matthew Yglesias in that Hillary Clinton's idea to break up the OPEC cartel is, well, kinda ridiculous. He's right in assuming that, um, I have no idea how you go about breaking up an organization that we're not members of, but that also it wouldn't really do anything.

Gas prices are incredibly high because demand for oil has gone through the roof. It isn't as if OPEC isn't producing at a peak capacity because they more they meet said demand, the more money they make ... and oil companies are making tons of money.

Likewise, this why the suspension of the gasoline tax won't accomplish anything. Companies will maintain the prices because the market has shown it can withstand such high rates, and the removal of the tax will do nothing to decrease demand and, if anything, it might actually increase demand, thus driving the price up even more.

3 Comments:

Anonymous Anonymous said...

Thank God for federal gas taxes, the only thing standing between us and higher gas prices.

Reggie

11:45 AM  
Blogger Jmac said...

Um, wow.

I don't think that was my argument at all, but if you want to play 'divorced from reality' then go ahead.

12:15 PM  
Blogger Mike said...

Well, it is "Reggie" after all.

As far as breaking up OPEC? That's done with the military, thank you very much.

2:16 PM  

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