In the latest TIME, Michael Kinsley bemoans politicians’ recent gas price pandering. He says ?the U.S. revealed its complete ignorance of basic economics.?
Unfortunately for Kinsley, he reveals his own ignorance two paragraphs later:
The Saudis apparently believe that a lower oil price will be good for them in the long run. If they’re right, it surely means that a lower price would be bad for the U.S. When it comes to the price of oil, the interests of producers and consumers are diametrically opposed.
Well, no. The characteristic of a market transaction is that both parties benefit. The producer wants the money more than he wants his product. The consumer wants the product more than he wants his money.
Perhaps Kinsley needs a copy of Thomas Sowell?s Basic Economics.
