Let’s learn to love high gasoline prices!

By Jeramy Webb (ISI ’66-’68)
EWCA Brisbane Chapter

Petrol prices are reaching around $1.60 per litre in Australia and in New Zealand, when I was there, they had reached $2 a litre.

Now a lot of politicians around the world want to increase the production of ethanol to reduce dependence on oil and reduce the tax on petrol. But policies are badly misguided. The reasons are pretty clear. Firstly, given the world is inexorably running out of oil there is no better way to push people into substitutes than to let the price push them. Continue reading