Obama's Energy Plan - Socialism in Action

Courtesy of Tempus Fugit:

Barack Obama’s plan to reduce the economic burden of gasoline prices is to tax the oil companies, and give $1,000 “rebate” checks to consumers. Which, of course, will result in oil companies raising the price of their product to make up for the additional cost of the tax, erasing any benefit (and raising the price of everything that uses oil to get to its destination). Consumers lose, as oil prices and the price of everything goes up. The oil companies lose a little, as the increased price somewhat mutes demand (gasoline is inelastic, but not completely so), and the government gains more power. Hooray for big government solutions.

To quote Scot Martin, "You tell me, is this politics as usual or "hope and change?" Or hopeless usualness?"

---

Tags: Barack Obama, Election 2008, energy plan, socialism To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!