They did cut the diesel tax, so not 100% retarded. But yeah, statists are generally not very bright.
People will just rush out and consume more diesel, if it is cheaper, worsening the shortage.
And capping the price will make the many companies and countries considering bringing additional sources online rethink. There's a shortage of oil on the market, but there is actually a lot of potential oil sitting on the sidelines, waiting for the price to finally cover costs.
Measured in gold, oil is still really cheap. It just seems expensive to us because we spend so much income on real estate, but we spend it on real estate because everything else has gotten so cheap and the income we earn has to go _someplace_. If energy stays up, for a while, housing will go down, and people will more easily be able to afford the higher energy cost. The solution to high prices is high prices. High prices either reduces consumption and/or changes spending patterns.
So, I suspect that they are trying to push down energy costs to keep real estate afloat. Home owners vote.
They will try to fix what they broke by offering energy companies subsidies to bribe them to take their production online. They will need to raise energy taxes to provide the subsidy. They just run around in circles.
And capping the price will make the many companies and countries considering bringing additional sources online rethink. There's a shortage of oil on the market, but there is actually a lot of potential oil sitting on the sidelines, waiting for the price to finally cover costs.
Measured in gold, oil is still really cheap. It just seems expensive to us because we spend so much income on real estate, but we spend it on real estate because everything else has gotten so cheap and the income we earn has to go _someplace_. If energy stays up, for a while, housing will go down, and people will more easily be able to afford the higher energy cost. The solution to high prices is high prices. High prices either reduces consumption and/or changes spending patterns.
So, I suspect that they are trying to push down energy costs to keep real estate afloat. Home owners vote.
They will try to fix what they broke by offering energy companies subsidies to bribe them to take their production online. They will need to raise energy taxes to provide the subsidy. They just run around in circles.
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