Mexico's Lefty Petro Subsidies Cause Absurdities

Petro is "cheap" in Mexico due to lefty subsidies. This means that consumers see low pump prices, about half that in Yankee towns (about $2 versus $4).

Absurdity 1: Yankees cross into Mexico to fill their tanks. The poor Mexican taxpayers thus pay for half of the real purchase price of the Yankee fillup.

Absurdity 2: Shortage! In a free market, if demand exceeds supply, the price rises. This forces consumers to conserve, and provides producers an incentive to boost production. But in lefty Mexico, "price gauging" is a crime. That inevitably leads to hallmark of "anti price gauging" laws: empty shelves boasting attractive prices. What good is $2 petro that doesn't exist? Only one good served: crusaders against "price-gauging" feel better.

Servants of Rectitude and Exactitude must know that if Obama has his way with "Windfall Profits" taxes, this will only drive prices higher, just as they did when Nixon and Carter employed them during previous periods of petro scarcity. Reducing profits will lesson the incentive for petro companies to boost their supplies (via new drilling and more refineries).