The folly of 'fixing' energy price hikes By Edward L. Glaeser

[YankeyMCC]

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HIGH ENERGY prices can bring out the best in people and firms, but they often seem to bring out the worst in politicians. Whether or not greed is good, there is plenty to be said for a little thriftiness. High prices, painful as they may be, do more to encourage energy conservation than replaying every one of President Carter's sweater-clad exhortations to turn down the heat.

But politicians sometimes react to high oil prices as if the Bill of Rights had bestowed on Americans the inalienable right to cheap fuel. Elected solons are now considering a Home Energy Affordability Tax Relief Act, which promises households a tax credit equal to one third of a home's energy costs up to $500. Some congressmen have called for restricting energy markets in an attempt to curb "speculation." Earlier in the election season, two presidential candidates came out for a temporary summer holiday for gas taxes.
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Consumers have the ability to make wise decisions if they face prices that accurately reflect costs. Firms have just as much ability to innovate in ways that will attract thrifty buyers. High prices may be painful, but they convey a key nugget of information: Energy is scarce; use it wisely. If the government uses tax policy to artificially reduce energy prices, then the government will only deter private individuals from appropriate conservation.
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http://www.boston.com/bostonglobe/editorial_opinion/oped/articles/2008/08/01/the_folly_of_fixing_energy_price_hikes/

[Demeter]

1. Yup. Those High Prices Were FIXED

and the folly is that the GOP is going down the tubes.