4 ms·
Aren't Russia and Saudi Arabia playing a short term game to try and run US shale companies out of business? In that case, wouldn't it be logical for the governm
by xur17 7y ago
Aren't Russia and Saudi Arabia playing a short term game to try and run US shale companies out of business? In that case, wouldn't it be logical for the government to step in and protect these companies via tariffs rather than bailing them out in a few months when they go bankrupt? It would presumably be cheaper.
- tdhoot 7y agoI think it's inconclusive if Russia and Saudia Arabia are actually working together to drive US shale out of business or whether that's just a convenient side-effect of their own dispute. But yes, what you describe is known as dumping and governments have enforced tariffs or quotas to prevent them. I'm not sure if it's ever been done for oil, possibly because in most cases it'd be political suicide in the US to argue for higher gas prices for consumers.