Sunday, August 10, 2008

Asians Go on a Gas Diet

So much of our public debate on energy shows such a lack of knowledge of basic economics that I just had to make fun of it in the companion Daily Egg satire. Here are some links that drove that silliness...

One of the constants in all stories about gasoline prices has been the increase in demand in the developing world including China. What is only just coming out now is that the *reason* for massive demand increases has been state subsidized prices for gasoline.

The Wall Street Journal covered the story. WSJ articles disappear over time and you have to pay $$$ to get them out of archive.

Here is a New York Times article on the same subject.

Here is a cut n paste of another WSJ story that was plopped into a blog. This will probably not go away. Scroll down through all the ads and you'll find it.

I also did a little looking for convenience store economics. Here is a good basic story from National Public Radio.

and, if you really want to know the full skinny, here is a complete Primer on gasoline pricing from the Energy Information Administration.

The next time you hear someone bleating about the conspiracy behind higher gas prices, remember this fact: every time that Gas Prices have undergone a sudden spike, Congress has required the Federal Trade Commission to look into price gouging and profiteering. The answer usually comes back after all the fuss is over. Every report has the same conclusion: no gouging, no profiteering, blame it on the law of supply and demand.