Quote:
|
Originally Posted by Ace
I don't want to give a Econ 101 lecture, but as an example if the government says that the mining of tar sands require method A and method A is more expensive than method B, the cost of the oil from tar sands will reflect the higher cost in method A.
Certainly there may be other economic benefits to method A over method B, and I am not an anarchist - there is a role for government regulation in the market. Government has a role in making determinations on the net economic costs of issues having a macro impact.
|
I meant in practice, not in theory. What specific regulation has been done? And are you factoring in the record profits? I see a connection between the record high gas prices and the record high profits... I dunno.
Quote:
|
A company that makes a profit, invests in R&D, pays taxes, follow the rules and regulations in a competitive market with other healthy oil companies. Competition will regulate profits.
|
Sounds good to me, cept for the regulated profits. There's no guarantee that a free market will bring regulated profits.