“The American people will never knowingly adopt Socialism. But under the name of ‘liberalism’ they will adopt every fragment of the Socialist program, until one day America will be a Socialist nation, without knowing how it happened.”

Socialist Party presidential candidate Norman Thomas

Wednesday, June 27, 2007

Don't mess with the market

Restricting fuel consumption by imposing rations is about as economically stupid as mandating levels of ethanol usage when the consumers don't want it. You'd think Iranian president Achma-dinnerjacket would have learned this from the wholesale disaster that was the Carter administration...you'd be wrong...

TEHRAN (Reuters) - Angry Iranian motorists queued for gasoline on Wednesday hours after the world's fourth largest oil exporter imposed fuel rationing, sparking chaotic scenes and the torching of two pump stations in the capital.

Drivers raced to fill up their tanks late on Tuesday after the Oil Ministry announced the delayed scheme would finally go ahead at midnight after months of confusion and conflicting statements, forming lines that stretched hundreds of meters.

One fuel station in Pounak, a poorer area of the capital, was set alight while another in eastern Tehran was partially burnt, two of its pumps completely destroyed by fire, witnesses said.

Those who missed the midnight deadline still faced long lines early on Wednesday in a country where many see abundant and cheap fuel as a right, even after government in May hiked the liter price by 25 percent to 1,000 rials (11 U.S. cents).

Despite its huge energy reserves, Iran lacks refining capacity and must import about 40 percent of its gasoline, a sensitive issue when world powers have threatened new U.N. sanctions in a row with Tehran over its nuclear program.

I have two sentient observations to make: 1. if gas is not plentiful, the prices will go up naturally and the consumption will therefore decrease as desired. The government doesn't need to meddle with a system(supply, demand, price) that works perfectly every time. 2. What is it about the cultures of certain groups of people that compels them to react to disappointment with violence? They are trashing their own neighborhoods for heaven's sake.

Irate Muslims doing what irate Muslims do best.

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