Thursday, August 17, 2006

This trick never works 

There are people who I often consider reasonable who keep thinking the government should just do something about gas prices. What that means is more or less fixing them, as is happening now in Ukraine. When you fix price below equilibrium, children, what happens? Lines form because people know quantity demanded will exceed quantity supplied (they won't say it that way because they speak normal languages, not economics.)

People complained about Yulya Tymoshenko being a populist (including me.) It appears new/old prime minister Viktor Yanukovych is drawing on the same well.