Banking service chronicle Monthly Magazine by bsc academy-subscribe published this is article page no 59 the solution to oil shortages<b> the tragedy of price controls is that it forces a mis-allocation of resources. normally the market determines where the oil goes. if it is to expensive people cut back on pleasure trips but no elderly folks die for a lack of heating oil. the high price also brings about the resolution because now it becomes profitable to drill more wells to make electric cars and otherwise develop new technologies. imagine for a moment the extreme. if the government said no gas could be sold for more than 30 cents a gallon no other transportation technology could compete with gasoline-powered cars so none would be developed. meanwhile no new wells would be dug and we would run out the existing supply. with no alternatives developed it would be a catastrophe. letting prices go up and down naturally is the solution to this or any oil shortage. some of the rarest things on this planet are available to you all the time - if you will pay the price. it is said that all the gold in the world could be put in a large barn and yet you can buy gold anytime you want. it is price controls that cause shortages. remember that the next time there are shortages in some basic commodity despite all the governments best efforts. all their efforts are just politics and if there is an oil shortage you can be sure that they caused it banking service chronicle monthly magazine.
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