Politico-Economics

There should be a class. If a company is making profits, it must be gouging, right?. Such is the logic of our esteemed Washingtonian demagogues. Pathetic. Take a look at Doug Bandow's recent article on the topic here. Good stuff.

I admit that I am little more than an armchair economist, but I at least understand the function of price. At the risk of stating the obvious, price is the most capable and efficient method of allocating scarce resources. It's purely objective. As such, price must reflect that magical point where the supply and demand equilibrium remains static. If price is too high, then demand falls, supplies stack up, and company profits fall - they do not post record numbers. Surely our "leaders" know this. What gives? And as I type, in the background I hear Miles O'Brien exclaim, "record gas profits - exploitation or just good business?" Geez. I'm moving.