Category Archives: News

News

How changing prices signal buyers and sellers in a free market economy

Leave a comment

Here’s a lesson in capitalism from the New York Times. (H/T ECM)

Excerpt:

The oil industry has been on a hot streak this year, thanks to a series of major discoveries that have rekindled a sense of excitement across the petroleum sector, despite falling prices and a tough economy.

These discoveries, spanning five continents, are the result of hefty investments that began earlier in the decade when oil prices rose, and of new technologies that allow explorers to drill at greater depths and break tougher rocks.

“That’s the wonderful thing about price signals in a free market — it puts people in a better position to take more exploration risk,” said James T. Hackett, chairman and chief executive of Anadarko Petroleum.

And what do we learn from this? Do oil prices go up because of greed? No.

When supply is low or uncertain, but demand is high, then prices must rise. Rising oil prices signal consumers to curtail their consumption, and they signal producers to invest more and take more risks to find more oil.

The government must not interfere to set prices lower when prices rise due to a shortage. Lower prices means that producers will not invest or take risks in order to find more oil for consumers. We have to let producers have their profits in order to for them to invest and take risks to find more oil. And when more oil is found, the price of oil will go down naturally, without the government having to get involved. The more government gets involved, the more opportunity there is for corruption.

Share

News

Evaluating Sarah Palin’s speech in Hong Kong

2 Comments
Sarah Palin giving a speech on economic policy
Sarah Palin giving a speech on economic policy

Story from the Wall Street Journal. (H/T Caffeinated Thoughts, Muddling Towards Maturity)

Let’s take a look at her speech.

Somebody has been reading Thomas Sowell’s book “A Conflict of Visions”, in which he talks about “the constrained vision” and “the unconstrained vision”.

We don’t believe that human nature is perfectible; we’re suspicious of government efforts to fix problems because often what it’s trying to fix is human nature, and that is impossible. It is what it is.

Here’s her defense of the free market.

Lack of government wasn’t the problem. Government policies were the problem. The marketplace didn’t fail. It became exactly as common sense would expect it to. The government ordered the loosening of lending standards. The Federal Reserve kept interest rates low. The government forced lending institutions to give loans to people who, as I say, couldn’t afford them. Speculators spotted new investment vehicles, jumped on board and rating agencies underestimated risks.

The speech also discusses cap-and-trade, free trade, and more.

Critical acclaim

Caffeinated Thoughts did a great job of linking some of the reactions from the left.

The New York Times:

A number of people who heard the speech in a packed hotel ballroom, which was closed to the media, said Mrs. Palin spoke from notes for 90 minutes and that she was articulate, well-prepared and even compelling.

“The speech was wide-ranging, very balanced, and she beat all expectations,” said Doug A. Coulter, head of private equity in the Asia-Pacific region for LGT Capital Partners…

[…]Mr. Goodé, a New Yorker who said he would never vote for Mrs. Palin, said she acquitted herself well.

“They really prepared her well,” he said. “She was articulate and she held her own. I give her credit. They’ve tried to categorize her as not being bright. She’s bright.”

My view? I say that Thomas Sowell prepared her. She probably ordered all his books from Amazon.com. Then she read them all at the kitchen table, with her glasses on and a laptop in front of her for her notes.

I am becoming more and more comfortable with her as a solid advocate for my point of view.

Check out her Facebook page where she’s been writing lately.

Share

News

Canada to walk out of Ahmadinejad’s speech at UN conference today

Leave a comment
Canadian Prime Minister Stephen Harper
Canadian Prime Minister Stephen Harper

While Obama belittles his own country and our allies at the UN conference, Canada is doing something really heroic.

Story from the Ottawa Citizen. (H/T Andrew, ECM, Hot Air, Gateway Pundit)

Excerpt:

Canada will boycott Iranian President Mahmoud Ahmadinejad’s speech at the United Nations today, saying his outbursts about the Holocaust and Israel are “shameful.”

Foreign Minister Lawrence Cannon will be at the world body to attend the opening of the UN General Assembly’s annual debate, but officials signal he and other members of the Canadian delegation will vacate when the Islamic republic’s president approaches the podium.

Walking out of the chamber is seen as a strong diplomatic show of disgust at the UN — and since the 192-member chamber is generally packed on the first day of the annual summit, Canada’s empty seats will not go unnoticed.

“President Ahmadinejad’s repeated denial of the Holocaust and his anti-Israel comments run counter to the values of the UN General Assembly, and they’re shameful,” said one Canadian official.

“He uses his public appearances to provoke the international community, and that is why Canada’s seats will be empty.”

Here are some media interviews with Stephen Harper if you would like to know more about him. A post about Harper visiting his troops in Afghanistan. A post about Harper signing free trade deals, and generally trying his best to lead the free world.

UPDATE: ECM sends this post from Ace. The other countries are following Stephen Harper’s lead.

Share