« The Morality of Free Trade | Main | Balance of Trade: Nothing More Absurd» Don Boudreaux
December 07, 2006
Always Low Prices
Don Boudreaux
I love this letter that appears in today's Wall Street Journal:
I was surprised to learn from your editorial that Hugo Chávez is allowed to sell oil to Joe Kennedy's Citizens Energy Corp. at a 40% discount. Surely a price this far below market runs afoul of the "antidumping" policies beloved by many in Mr. Kennedy's party. Shouldn't the American public be protected from lower prices on oil in the same way they've been protected from lower prices on bicycles, frozen concentrated orange juice, tissue paper, footwear, fishing tackle, hot-rolled carbon steel, televisions, replacement windshields, shrimp and several hundred other imported items. If Democrats allow lower prices here, they may even have to tolerate Wal-Mart.
Bruce E. Ikawa
Professor of Business and Economics Hillsdale College
Hillsdale, Mich.
(Hat tip to Mike LaFaive.)
Posted by Don Boudreaux in Antitrust, Prices, Trade | Permalink
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Comments
Consider the 40% a charitable contribution... like campaign contributions.
Posted by: Bruce Hall | Dec 7, 2006 7:49:49 PM
Or taxable imputed income.
Posted by: johng | Dec 7, 2006 10:01:46 PM
Consider also that during the recent runup in gas prices, two gas stations in Colorado were charged with violating something called the "Unfair Practices Act" for selling gasoline at prices below the market value.
Posted by: John S. | Dec 7, 2006 10:03:12 PM
Is it just me, or does that discount smack of a possible bribe, considering who Joe is related to? I would think that such a "gift" to anybody that closely related to a major US political figure would be the subject of an intense investigation.
Posted by: Bob Smith | Dec 8, 2006 12:58:59 AM
Fantastic point.
Posted by: Chris Meisenzahl | Dec 8, 2006 6:47:22 AM
Haha! I love it!
Sound economic logic AND a jab at the Kennedys... it's got it all.
Posted by: Josh | Dec 8, 2006 8:07:30 AM
Zing!
And it is much more akin to a bribe than charity, though I suppose any bribe could be considered charity if looked at in the "correct" light.
Posted by: Ray G | Dec 9, 2006 2:11:36 PM
Consider if the US government gave a commodity (wheat we purchased from farmers) to a prominent politician in, say, Nigeria, and said politician ran TV ads touting cheap wheat and saying call 1-800-ABU-DADA. Whould not we be accused of interfering with the internal politics of Nigeria? What if Abu Dada was considering a run for political office after an absence to rehabilitate himself. Or is this a bribe to Abu Dada's province where his Uncle Abu Tedu is a powerful senator and his allies Abu Dodd and Abu Barney wil also benefit?
I think the administration/State department should put the kabosh of Citco Joe's little game but they don't have the stones to do it.
Posted by: Joe Blalock | Dec 11, 2006 10:24:47 AM
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