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Understanding Economics

19Kilo Wrote: Sep 26, 2012 3:01 AM
Didn't Obummer say something to the effect that Oil/Coal should be expensive and if he had his way it would? So gas has doubled since his reign has begun and coal mines are being closed and coal miners are becoming unemployed. What a horrid view of life in America. I really miss Ronald Reagan. He didn't sugar coat issues, but he made you feel a sense of confidence in the future. Obummer is the anti-Reagan. I hope the electorate declares to him on 6 November 2012: "You have been weighed in the balance. You have been found wanting. Today your kingdom is removed from you." God Bless the U.S.A!
Here's a question: If there's a disaster, a war, a severe drought or some other calamity that restricts future supplies of a commodity -- such as oil, coffee or corn -- what is the intelligent thing for people to do right away? If you said "use less now and try to produce more," you'd be absolutely correct. That's not rocket science, but understanding the machinery involved in getting people to do so is a bit more challenging.

The best way to get people to use less and produce more is to allow prices to rise. For example, say a...