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donsutherland1 · 06-19-08, 04:50 PM

During periods when economic shocks persist and pain mounts, there can be a push for radical and harmful solutions such as price controls or even nationalization. A May 28, 2008 Gallup Poll showed that Americans currently favor gasoline price controls by a 53%-45% margin.

If one goes back to the most recent oil price shock in 1979-80, one finds sentiments similar to some of those prevailing today. On November 6, 1979, The New York Times reported:

The...poll also asked, "Do you think the Government should allow the oil companies to keep those profits to encourage them to find more oil and gas, should it heavily tax the increased profits or should the Government take over and run the oil companies?" To that, 31 percent of the respondents said "keep the profits," 32 percent said "tax them," 23 percent said "take over the companies" and 14 percent did not answer.

Public support for nationalization may be running somewhat stronger this time around. A recently released Rasmussen poll found:

A Rasmussen Reports national telephone survey found that 29% of voters favor nationalizing the oil industry. Just 47% are opposed and 24% are not sure.

The survey found that a plurality of Democrats (37%) believe the oil industry should be nationalized. Just 32% of voters in Barack Obama’s party disagree with that approach. Republicans oppose nationalizing the oil industry by a 66% to 16% margin. Unaffiliated voters are opposed by a 47% to 33% margin.

In her hit song "Complicated," Avril Lavigne sings, "...it's all been done before." When it comes to sentiments for nationalizing the oil industry or parts of the industry in the midst of high prices, such calls truly have "all been done before."

Unfortunately, when the media's attention and the public's focus is on high prices or other economic pain, the reality that nationalization efforts have generally proved dismal failures e.g., during the 1970s in Britain, gains insufficient attention. In the absence of such vital information, a herdlike mentality can sometimes develop. When that happens the risk that policy makers embrace suboptimal policy decisions would increase.

Hopefully, neither Senator McCain's or Senator Obama's Presidential campaigns will succumb to short-sighted appeals to nationalize part of the oil industry. Otherwise, an already challenging energy situation would be made even worse.

06-19-08, 04:50 PM	#7 (permalink)
donsutherland1 Moderator Mod team member Join Date: Oct 2007 Last Online: Yesterday 09:20 PM Location: New York Posts: 2,447 Thanks: 810 Thanked 1,561 Times in 871 Posts Lean: Centrist Gender: Awards:	Re: Dems want to nationalize Gas refineries? During periods when economic shocks persist and pain mounts, there can be a push for radical and harmful solutions such as price controls or even nationalization. A May 28, 2008 Gallup Poll showed that Americans currently favor gasoline price controls by a 53%-45% margin. If one goes back to the most recent oil price shock in 1979-80, one finds sentiments similar to some of those prevailing today. On November 6, 1979, The New York Times reported: The...poll also asked, "Do you think the Government should allow the oil companies to keep those profits to encourage them to find more oil and gas, should it heavily tax the increased profits or should the Government take over and run the oil companies?" To that, 31 percent of the respondents said "keep the profits," 32 percent said "tax them," 23 percent said "take over the companies" and 14 percent did not answer. Public support for nationalization may be running somewhat stronger this time around. A recently released Rasmussen poll found: A Rasmussen Reports national telephone survey found that 29% of voters favor nationalizing the oil industry. Just 47% are opposed and 24% are not sure. The survey found that a plurality of Democrats (37%) believe the oil industry should be nationalized. Just 32% of voters in Barack Obama’s party disagree with that approach. Republicans oppose nationalizing the oil industry by a 66% to 16% margin. Unaffiliated voters are opposed by a 47% to 33% margin. In her hit song "Complicated," Avril Lavigne sings, "...it's all been done before." When it comes to sentiments for nationalizing the oil industry or parts of the industry in the midst of high prices, such calls truly have "all been done before." Unfortunately, when the media's attention and the public's focus is on high prices or other economic pain, the reality that nationalization efforts have generally proved dismal failures e.g., during the 1970s in Britain, gains insufficient attention. In the absence of such vital information, a herdlike mentality can sometimes develop. When that happens the risk that policy makers embrace suboptimal policy decisions would increase. Hopefully, neither Senator McCain's or Senator Obama's Presidential campaigns will succumb to short-sighted appeals to nationalize part of the oil industry. Otherwise, an already challenging energy situation would be made even worse.