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It's funny that we're technically cheering on a cartel (OPEC) to artificially raise prices for a commodity that the world depends on. Ok maybe not so funny, bu
by twomoretime 7y ago
It's funny that we're technically cheering on a cartel (OPEC) to artificially raise prices for a commodity that the world depends on.
Ok maybe not so funny, but it's a conversation worth having, isn't it? Doesn't it imply something severe about free market innefficiencies?
- elgenie 7y agoOn of the classic ways that oligopoly and monopoly power can be abused is by engaging in temporary price wars to drive any smaller competitors so that prices can later be jacked up and monopoly profits reeled in. That's what's happening here.
- Robotbeat 7y agoIf we ignore the regressive effects of (eventual) high energy prices (which are significant! a LOT of people are helped by low gas prices. Popular protest understandably occur when governments eliminate deep fuel subsidies)... ...then the long-term monopoly rents being much higher in terms of total revenue is actually good for the environment and maybe good for humanity in absence of something more rational like a carbon tax. It can act like a Carbon Tax, but with the revenue going to Saudi Arabia or Russia (etc). In other words, non-ideal... But does maybe help electric cars in the very long-term (ignoring the near-term damage to existing electric car makers, and assuming we wouldn't be instituting a carbon tax anyway). Much better would be a local carbon tax with revenues redistributed to counteract any regressive impact while also funding transition to alternatives.
- twomoretime 7y agoOh no, I don't think so in this case. Putin and SA are the primary belligerents, in which case they may have other geopolitical motivations for playing this game.