Thank you for returning to trying to make an argument for your case instead of just calling me an asshole etc... (yeah I know you threw my namecalling '
Seriously... are you retarded or just forgetfull' of you back in my face but that's fine... if I can't take what I dish out I shouldn't dish it out to begin with :-D
You're arguments are still wrong but at least you're trying :-D
But let's take the article you've sitet as you're argument for why pricecontrols doesn't work...
First of all it's allways a good thing to start with finding out where the author is coming from (what his premis is)...
Now I don't know him personally but he is a writer for a magazine called 'capitalism magazine'... which means he is probably a strong proponent of a free marked without regulation of any kind... but if that's his premis (all regulation is bad) and he concludes in the end that a specific regulation is bad then that's just a circular argument and as such holds NO value... (essetially he's saying - if all regulations are bad then this regulation is bad... this is logically true but holds no information and therefor is worthless)...
But like I said... I don't know him and on the off chance that he is not starting from that premise but thinks that some regulation is good... just not this one... let's look at his argumentation...
he starts by siting hawaii's attemt in 2002 to control oilprizes and then speculates why they differed it to 2004 and that it was because they knew that it would have bad concequences so they differed it till after the elections and then states that as fact...
The problem here is unless he has sources (which he does not - or doesn't mention) inside the hawaiian government telling him that this was the reason then it is NOT fact... just speculation...
Now he might be right (only time will tell) but other explanations can be offered to why they differed the implementation of set prizecontrol... maybe they realized that if implemented imediatly and not give the oilcompagnies sufficient warning so they could implement changes to adjust to the new rules it would end up costing the compagnies a lot of money and thereby jobs and mayby even put them out of business (= even more jobs lost) so they decided to give the compagnies ample warning so the impact wouldn't be fatal...
I'm not saying that's the reason either but his theory of why they did it is NOT the only reasonable explanation so it doesn't prove that they somehow knew (or expected) that prizecontrols (allthough populist) are bad... so that part of the argument falls away (to be revisited another day if he gives proof that he was right about the motivation)...
then he sites that oilcompagnies have allready protested and threatned to leave hawaii... but off course the oilcompagnies are gonna complain... did you expect anything different?... that's not an argument for it being wrong or even hurtful... to any compagny change is ALLWAYS bad... the logic being... as is now makes us a lot off money (that is known) and if you change that I don't know if I can still make a lot of money (that is unknown) so I want to stay in the status quo cause here I know I'll make money...
But what if they get mad and leaves?
you think that even if they leave compagnies will leave any marked where they can make money? - no the answer is that even if the compagny leaves they will still sell oil to hawaii at the lower prizes (it's not all just money it's also markedshares)...
Let me give you an example from denmark... we have a cap on medical expences... you think that means that no pharmacutical will sell their products in denmark (I meen we are only 5 mill people so it's not the worlds biggest marked)?
No they ALL sell their products here but at a lower prize than countries whithout a prizecap and the same will be true for hawaii... so they will still have the same amount of oil as they had before but cheaper... as long as the compagnies still can make money they will sell... so NO shortage... and that takes care of that argument...
Then he sites the oilcrisis of '79 and blames it on the prizecontrol of oil back then... and since there have been no such crisis after reagan got rid of those controls (well they are waiting in line now aren't they?) :-D
Also I'm old enough to remember the crisis and the reason for it... and it is demonstraly wrong that it was because of prizecontrol...
Now I don't know about the US prizecontrols and what they were in '79 but I do know that NO country in europe had any prizecontrols on oil in the 70'ies and we also (as did the rest of the world) an oilcrisis... it was worldwide and not just in the US... so that can't be the reason for the crisis... and infact the real reason (if he knew what he was talking about) was that in '79 the consumption of oil worldwide reached the level of the capacity of the middle-east to pump up oil... and as the consumption kept rising (and still do till this day) but the new methods of pumping even more oil out of the ground hadn't invented yet no increase in oilproduction followed so consumption rose above production and created a shortage worldwide which resulted in the crisis (NOT prizecontrol)...
To prove my point... we are reaching the same kind of bottleneck in the consumption/production cycle which is why oilprizes has skyrockeded worldwide in resent years (without prizecontrol in the US - excluding hawaii)... and if we don't SOON find improved methods of produktion or alternate energysources we will have a new oil crisis (again NOT because of prizecontrol)... so that takes care of that argument... :-D
Then he moves on to sweden and rentcontrol and sais that even though more people could afford homes and therefor more people bought a home... that would most centainly result in a shortage of homes available so eventualy the homes would have to cost more because shortage = more expencive... what he forgot was to look and see if that had been the case in sweden... and funny enough sweden didn't get a morgagecrisis or a shortage of house until reasently... but that was because of the worldwide economiccrisis and NOT because of yearlong rentcontrols... and that takes care of that argument... :-D
then he moves on to saying that not only does prizecontrols cause shortages (which he has yet to prove - see above) but also a decline in quality...
Then he mentions that if there is a shortage of housing the incentive of the landlord to maintain the houses disapears so the quality of housing goes down... and in that he is 100% right... in a shortage you get lower quality for the same money....
The only problem with that is as I have shown above prizecontrols do NOT create shortage so that 'strawmans' argument is pointless in this discusion on prizecontrol... since it doesn't create shortages it doesn't create lower quality... so that takes care of that argument... :-D
He then finishes by postulating that since prizecontrol causes lower quality (which it doesn't) waiting lists will skyrocket and because of the shortage (which it doesn't cause) it will eventually be astronimacaly more expencive than what you have now... but since I have allready shown that he failed to produce evidence that prizecontrols causes shortages causes lower quality there is NOT longer waitinglists and it is NOT more expencive which is what you see in ALL industrialized countries (except the US) which have universal healthcare payed for by taxes...
Again your argument turns out to be wrong...
But it all comes down to this... it doesn't matter how complex and finetuned your economic (or other) model is... if it contradicts reality the model must change NOT reality...
Your (and the author of the article) model predict that universal healthcare will be more expencive and produce lower quality...
The reality of allmost 100 years of univesal healthcare in the rest of the industrialized world have produced same to lower prizes and better healthcare...
And since your model contradicts reality there is only one option... your model is wrong and has to change to fit reality... reality doesn't have to change to fit your model... :-D
Love Thothlike
by
Thothlike on
11/13/2009 01:55:01 PM EST
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