Can’t be surprised that the AP gets this wrong:
A North Myrtle Beach legislator has introduced a bill that would cap gas prices in South Carolina at whatever the average wholesale price is on June 1.
Democratic state Sen. Dick Elliott of North Myrtle Beach said the bill he introduced Wednesday is needed because gas prices are slowing the state’s economic recovery.
Elliott’s bill would put any excess charges by retailers above the wholesale gas price into a trust fund. The Legislature would decide how to use the money to benefit citizens.
If you want to guarantee gas lines and shortages, you are the right track, Dick.
28
2011 At 10:50 am, russ Said:
Does he not remember the gas lines in the late 70′s? I still remember the gas stations hanging flags out letting people know if they had a shot in hades of filling their tank.
Best case, this is a publicity stunt. Worst case, it passes.
28
2011 At 11:06 am, musicmax Said:
It is somehow appropriate that price controls again be associated with someone named DICK.
28
2011 At 11:57 am, beskeptical Said:
So if I understand this right, there’s no change in the cash out of my pocket.
Any amount over “the limit” is seized from the retailer. The retailer not only loses the profit of a couple cents a gallon but probably can’t cover the cost of gas to him.
This sounds like a real good idea to people that are morons
28
2011 At 6:25 pm, Chris Cole Said:
You are correct, Jeff: price controls skew the supply/demand balance downward, potentially to zero. The same goes for so-called “price-gouging” laws. There ain’t no such thing. Yet, this elementary economics principle seems to be beyond too many political figures and the journalists who cover them.
29
2011 At 10:19 am, clayj Said:
If I owned a gas station in SC and the legislature passed a nonsense bill like this, I’d suspend all gas sales and just use the existing inventory for my own personal use.
And then let’s see if they’d pass another law FORCING me to sell my product at a loss.
Atlas is shrugging, folks.