“Economic ignorance, misconceptions and superstition drive us toward totalitarianism because they make us more willing to hand over greater control of our lives to politicians. That results in a diminution of our liberties. Think back to the gasoline price controls during the 1970s. The price controls caused shortages. To deal with the shortages, restrictions were imposed on purchases. Then national highway speed limits were enacted. Then there were more calls for smaller and less crashworthy cars. With the recent gasoline supply shocks, we didn’t experience the shortages, long lines and closed gas stations seen during the 1970s. Why? Prices were allowed to perform their allocative function — get people to use less gas and get suppliers to supply more.
Economic ignorance is to politicians what idle hands are to the devil. Both provide the workshop for the creation of evil”. — Walter Williams, Professor of economics at George Mason University
Ah yes, the totalitarian regime of Nixon and his price controls. Recent supply shocks differ greatly than those during 1973, the year Nixon signed the EPAA (Emergency Petroleum Allocation Act). Oil producing Arab states entered fourth Arab-Isreali war, and proclaimed a embargo of oil to the US. The difference between now and then is that in 1973 prices could not perform allocative function because suppliers had staunched flow.
I think you are mistaken, the shortages and long lines were during the Carter administration, not the Nixon administration. However, with that said, I will be the first to also say that Nixon was no conservative on economic matters….
Heres Chronology of world oil markets 1970-and on, the shortages and long lines were indeed during Nixon administration at the height of Watergate, Embargo ended on March 18, 1974. 1974 being year which Gerald Ford assumes the presidency.
http://www.eia.doe.gov/emeu/cabs/chron.html#a1979
Wow, you learn something new everyday, and here I was thinking it was during the Carter administration this whole time. One of the many downfalls of being born after the Nixon administration, I guess. Thanks for the info!!!
On second thought, it seems that we were both right, according to Wiki:
Your right, he imposed them a short while after Iran fell to Khomeini and supply of oil dropped 4%. Carter was still against price controls “More importantly, Carter, as part of his administration’s efforts at deregulation, proposed removing price controls that had been imposed in the administration of Richard Nixon during the 1973 energy crisis. Congress agreed to remove price controls in phases; they were finally dismantled in 1981 under Ronald Reagan.” Nixons price controls continued until 1981.
Williams says it well. I believe this is why we don’t get a decent economics education in state-run schools.