Hawaii to Ignore Basic Economics
From CBS News, via Catallarchy:
Hawaii will begin enforcing a cap on the wholesale price of gasoline next week, hoping to curb the sting of the nation’s highest gas costs.
The limit would be the first time a state has capped the price of gasoline–a move critics warn could lead to supply shortages.
But many Hawaii residents are just looking for some relief from soaring costs.
If you set prices artificially low, then demand will–not might, will–outstrip supply and you will, almost certainly, have supply shortages. It’s time for the legislature of Hawaii to take a basic economics course.