"spreading capitalism will bring down the price of oil"

[TheFarseer]

said Rush Limbaugh about a half hour ago. "Everytime you spread freedom and capitalism around the world, the price of goods and services goes down" If other countries develop and start to use more oil "we will find the oil to meet the demand" How can you just not get it so badly, Rush? He acts as if it's a shortage of milk, where we can just get raise more dairy cows and fix the problem. He cites a bet between two economists about the price change of 5 metals between 1980 and 1990 for evidence as if that had anything to do or any parallel to oil. But hey, don't take my word for it, just look at the price of gas and oil as demand goes up! Talk about ignoring the facts!

[libertypirate]

1. So will destroying fascism

I would rather destroy fascism

[ClassWarrior]

2. Oh sure, CAPITALISM will save us from the excesses of... ummm...

...capitalism?? :shrug: :crazy:

NGU.

[Meeker Morgan]

6. CAPITALISM will save us from the excesses of capitalism.

Save us? No, of course not.

Bring down the price of oil short term by zapping, say, Venezuela?

Yeah, that definitely could happen. :mad:

[dcfirefighter]

3. Rush and Capitalists don't understand economics

He is correct in that spreading free markets and free people reduces the price of manufactured & processed goods.

He is incorrect in that increasing demand raises prices of natural wealth and land. Raw oil being one of these. No amount of competition or productivity can produce more oil in the ground.

Increasing capitalism will reduce the price of refining oil, but not the price of raw oil. The price of refining oil is already very low, it's a competitive and widespread market (for now). As long as we keep monopolies from forming, and reduce the power of existing oligopolies, the price of refining should continue to drop.

There's not much we can do about the price of raw oil, except for reducing demand by developing new land use patterns (lower transport costs), and by charging the full cost of oil and fuel to users. This would lower demand, and therefore the price of raw oil, however the sale price would remain the same or rise. The additional tax revenue should be used to offset and reduce other taxes, and/or give an oil/energy/carbon stipend to all. The taxes to reduce should be the most regressive and the most injurious to productivity. My vote would be to reduce the payroll tax.

[eallen]

4. Exactly right.

[ClassWarrior]

5. Oh they understand it just fine...

...but they'd pretend they don't know their own dicks if it'd bring them more power and profit.

NGU.

[orwell]

7. Huh?

Since the Federal Reserve came into existence, the average annual inflation rate in the US has been around 3.4% per year. And that is after the book cooking that has been employed to lower the real inflation rate.

Another way of looking at it is that it takes about 1.00 in today's money to buy what cost around 10 cents in the early 50's.

Oh now I understand, Rush is telling us that we live in a non-capitalist dictatorship.

I guess he's right then...

/sarcasm