JHZR2
Staff member
People everywhere get subsidies which screw up other markets... The US may give farm subsidies, but the Koreans subsidize Lycra, cars, etc... Another country may subsidize something else, and another something else. (not to pick on the Koreans, its just what first came to mind).
But hey, were supporting a LOT of other countries, due to our lack of industry base anymore, and our need to buy LOTS of stuff.
Drugs are a good example of something where if you take away the mystique and difficulty of obtaining it... the price drops and the industry is destroyed.
Subsidies drop the price and destroy other countries' simialr industries... Maybe we could make a subsidized drug industry, and put the columbians out of business... However theyd likely show up here as illegals.
All the same, oil isnt a subsiudized industry to the best of my knowledge. Now, maybe if we started extracting oil from tar sands and whatnot... we would effectively subsidize our oil industry and put the OPEC out of business, or in a position that they need to reduce their prices so low they dont make much $$$ from it anymore... That would be good, until someone else starts using it up... and the oil sands folks start to loose jobs and others get in new huffs.
Energy is a necessary generic commodity, required everywhere that people are. Therein lies some of the problem I guess.
All the same, if we ran our food distribution practices the way opec runs their oil distribution... youd start seeing the population drop... or startup farms worldwide go up.
At the end of the day, its all a give and take... something goes up here, sopmething goes down there... Except apparently in the area of energy... world demand is going up, and everything costs more as a result.
JMH
But hey, were supporting a LOT of other countries, due to our lack of industry base anymore, and our need to buy LOTS of stuff.
Drugs are a good example of something where if you take away the mystique and difficulty of obtaining it... the price drops and the industry is destroyed.
Subsidies drop the price and destroy other countries' simialr industries... Maybe we could make a subsidized drug industry, and put the columbians out of business... However theyd likely show up here as illegals.
All the same, oil isnt a subsiudized industry to the best of my knowledge. Now, maybe if we started extracting oil from tar sands and whatnot... we would effectively subsidize our oil industry and put the OPEC out of business, or in a position that they need to reduce their prices so low they dont make much $$$ from it anymore... That would be good, until someone else starts using it up... and the oil sands folks start to loose jobs and others get in new huffs.
Energy is a necessary generic commodity, required everywhere that people are. Therein lies some of the problem I guess.
All the same, if we ran our food distribution practices the way opec runs their oil distribution... youd start seeing the population drop... or startup farms worldwide go up.
At the end of the day, its all a give and take... something goes up here, sopmething goes down there... Except apparently in the area of energy... world demand is going up, and everything costs more as a result.
JMH