Californian politicians are dumb!

[DJ_D]

I was reading about the energy crisis in California and it pisses me off. The politician think they can control the free market, so they put price ceilings on electricity. Well anybody who has taken any economics should know that PRICE CEILINGS CAUSE SHORTAGES! The problem is the dumb laws the politicians have passed, and now they want to try and fix the problem by passing more laws. When will they learn that it works best not to interfere.

 

[SirFshAlot]

and you assume the rest of the states have smart politicians?

 

[charrison]

Not any building new power plants in the last 20 years and population growth causes shortages as well.
I wonder if the treehuggers can still win this one.

 

[Raspewtin]

At least here in San Diego, they first screwed up deregulation and the price soared (not enough supply). Thus price ceiling was designed to control that without revoking deregulation completely. Then they talked to the Fed, and the Fed said they would force all western states to sell to California in a shortage. So while there is a nugget of wisdom in your statements, much of it is innacurate. They were under TREMENDOUS pressure by SDG&E and the entire deregulated area to put in price caps, b/c of the huge prices resulting in deregulation. IF they didn't cap the price, they could have kissed deregulation goodbye forever.

 

[Bulbasaur]

There has been some debate whether or not the energy suppliers were in collusion with one another to artificially drive up the prices (a la OPEC).

 

[BoberFett]

Hey DJ, haven't seen you around here much lately.

You do know, I hope, that you're entering a world of pain. Starting a political thread is an invitation for major flamage.

 

[roc919]

Policitians...overrated