US House passes BS legislation on gas prices.

Your government at work folks… they know you’re dependant and they’re going to capitalize on it.

The House of Representatives passed a bill yesterday that would make “price gouging” at the pump a FEDERAL CRIME.

This bill will do ABSOLUTELY NOTHING to lower the price of gas at the pump, and in fact could in turn worsen the problem.

Price gouging laws are pure price control and in a free market system, artificial price restrictions cause severe issues. When you have a depressed supply chain and an increased demand in industrialized countries (not JUST the US) you’re going to see an increase in prices. When you put your hand in the pot and your supply/demand variables do not change, you’re going to create an environment that will encourage runs on the product and in the long run you will cause severe damage to your supply, jacking up prices even more.

The other problem with laws like these is that they always seem to be extremely vague. Take this latest bill for example, price gouging is defined as “when the price is ‘unconscionably excessive’ or ‘indicates that the seller is taking unfair advantage of unusual market conditions.’”. Well THAT sure clears up the muddy water now doesn’t it.

So let’s see, $3.79 a gallon would be unconscionable excessive to whom? I know I wouldn’t like paying $3.79 a gallon for gas, but I also know that every single one of those politicians who are telling me it’s unfair can afford that without blinking an eye. So excessive for whom? Let’s say the price of gas makes it all the way to $5 a gallon… now that IS excessive… but is it unconscionable if the market demanded that price to curb the overdraw on supply?

Now, on to the “unfair advantage” clause. Just what is an unfair advantage? Lets say a huge earthquake rocks an area of the US, effectively destroying over 95% of the access into an area. ONE station is able to receive fuel shipments and as the nature of S/D would have it, in order to curb runs on their VERY limited supply. As such, he prices his gas @ $15 a gallon so that only people that REALLY need access to fuel will buy it. Under this new bill… this station owner by sheer luck of natural forces is taking an “unfair advantage” of unusual market conditions thus making him a criminal because of his situation.

This law would force this station owner to fix his prices at or below the market average, thus unleashing desparate people into his limited supply, essentially wiping out the fuel supply and potentially putting him out of business.

Seem very fair to you?