New Delhi: June 4, 2008: 1000hrs
It is a sure sign that a monopolist is bullshitting his customers – the people at large – when he institutes a “quota” for the good in question, so that those who consume more have to pay more.
Note that the opposite is true in all competitive markets, where “bulk buyers” pay less.
It is because of monopolists employing the “quota” that there are higher “commercial” rates for both electricity and water.
The same is true for gas – and restaurants pay more than domestic users for the same cylinder.
The government is now proposing a quota of 8 cylinders of gas per annum for all households (at current prices). Consumption of more will cost double.
This is nonsensical – and it illustrates the perils of being governed by socialists and communists who have no conception at all about what may be called the “principles of political economy”.
All our opponents are men without principles.
As I pointed out in an earlier post, the very idea of a “subsidy” on gas is absurd. The gas comes out free from the ground, and the only costs are bottling and transportation. It is because the monopolist has farmed out bottling and transportation contracts that are inefficient that the alleged “subsidy” is so high. Competitive private gas suppliers would install pipelines, save on costs, and make profits – while also giving big buyers big discounts (instead of penalizing them).
So say “No!” to the quota.
And call for free markets – in electricity, water and gas, and everything else.
Privatize every area in which the government is a monopolist.
The first to benefit will be the consumer, who will get better quality at competitive prices.
Whereas the monopolist sells less of the good at higher prices, competitive markets will sell more of the good at lower prices, with better quality too.
As more of the good will be produced and sold, all “non-competing” industries will gain, as this will increase the demand for their products: Say’s Law. For more on this law, a previous post entitled "Monopolies Versus Stratospheric Growth", click here.
And about gas: I noticed that in the western world domestic gas for cooking competes with electricity – which can also be used to power cooking ranges and ovens.
In India, both electricity and gas are government monopolies, and because electricity is totally unreliable gas becomes even more entrenched as a monopolist.
And the really poor get neither gas nor electricity. We see them everywhere collecting firewood.
To set a billion home fires burning, a fire in every hearth, we need complete privatization and competition, to bring in efficiencies.
Nothing less will do.
For now, just say “No!” to the gas quota.
It is a sure sign that a monopolist is bullshitting his customers – the people at large – when he institutes a “quota” for the good in question, so that those who consume more have to pay more.
Note that the opposite is true in all competitive markets, where “bulk buyers” pay less.
It is because of monopolists employing the “quota” that there are higher “commercial” rates for both electricity and water.
The same is true for gas – and restaurants pay more than domestic users for the same cylinder.
The government is now proposing a quota of 8 cylinders of gas per annum for all households (at current prices). Consumption of more will cost double.
This is nonsensical – and it illustrates the perils of being governed by socialists and communists who have no conception at all about what may be called the “principles of political economy”.
All our opponents are men without principles.
As I pointed out in an earlier post, the very idea of a “subsidy” on gas is absurd. The gas comes out free from the ground, and the only costs are bottling and transportation. It is because the monopolist has farmed out bottling and transportation contracts that are inefficient that the alleged “subsidy” is so high. Competitive private gas suppliers would install pipelines, save on costs, and make profits – while also giving big buyers big discounts (instead of penalizing them).
So say “No!” to the quota.
And call for free markets – in electricity, water and gas, and everything else.
Privatize every area in which the government is a monopolist.
The first to benefit will be the consumer, who will get better quality at competitive prices.
Whereas the monopolist sells less of the good at higher prices, competitive markets will sell more of the good at lower prices, with better quality too.
As more of the good will be produced and sold, all “non-competing” industries will gain, as this will increase the demand for their products: Say’s Law. For more on this law, a previous post entitled "Monopolies Versus Stratospheric Growth", click here.
And about gas: I noticed that in the western world domestic gas for cooking competes with electricity – which can also be used to power cooking ranges and ovens.
In India, both electricity and gas are government monopolies, and because electricity is totally unreliable gas becomes even more entrenched as a monopolist.
And the really poor get neither gas nor electricity. We see them everywhere collecting firewood.
To set a billion home fires burning, a fire in every hearth, we need complete privatization and competition, to bring in efficiencies.
Nothing less will do.
For now, just say “No!” to the gas quota.
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