Friday, May 23, 2008

Supply and Demand -- Democrats Offer To Repeat Carter Mistakes

The price of oil is not a mystery borne of conspiracies, it's simple supply and demand. In the late 70's we were in the same situation we are in now. What was the Democrat's solution then? The same as it is now: alternative energy and tax the oil companies.

Before we start down that path again why don't we take a look back and see how it all worked out.

When Jimmy Carter came into office the price of oil was around $14.00 per barrel. A lot happened during the Carter years, most of it bad. Investor's Business Daily has a good summary
here. By the end of the Carter Administration we had: the Synthetic Fuels Corp., the Energy Department, price controls on domestic oil, oil import quotas, and the Windfall Profits Tax. And when he left office the price of a barrel of oil was $35.00; that was a 154% increase.

The Democrats are now proposing more regulation, more taxes on oil companies and less drilling. What do you think will be the result of those policies? Just ask Jimmy Carter.

American Thinker Blog -- It's Supply and Demand, Stupid

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