Will Big government threats decrease prices?

PRICE CONTROLS AND THREATS TO PROFIT INCENTIVES ALWAYS PRODUCES SHORTAGES

HUMAN ACTION IS NEVER CONSIDERED BY BIG GOVERNMENT SOLUTIONS

The predicted solutions of socialist big government types of price controls is rearing its ugly head. This week Biden signed legislation that will attempt to cut the price of shipping costs by forcing price cuts on international shipping companies. He also has proposed enacting excess profits taxes on oil companies. You can now expect that our energy and shipping problems will now become more acute.

Don't be surprised that you will next see attempts to control prices of food. Again, if that happens you may very well see severe shortages of food. Incentives will produce more cooperation than threats, taxes and authoritarian control. We can only expect worse from this administration, their solutions are always more government and more intimidation and control.

Shippers have their own problems, increase fuel costs, and dead time in ports waiting to load and unload. These ships travel the world and if you attempt to make life more difficult for them in your country, they may just shift their emphasis elsewhere. Then what? More government threats?

As for oil production, refining capacity in the U.S. has been declining due to the explosion of costs and regulation in this country. Much more of the refined products are refined outside the country, which has made products more expensive and if over regulated may just be sold to other countries. Much is made that oil companies have made substantial profits with the ever increasing price of oil, but no one complained when they lost money during the declining price of oil. When prices stabilize their profits will also stabilize. No one mentions their profit to investment ratio, which is minimal compared to most tech companies, but who are considered allies to this administration.

Since the first day of the Biden administration the oil companies have been threatened with an end to the need for fossil fuels. Only foolish management would consider high priced investment in new plants and equipment. 

They have also suffered from discrimination by lenders who were incentivised by the administration to not lend to any fossil fuel companies. you reap what you sow with short sighted policies and reverse incentives to be energy independent.

The intentional policy of phasing out fossil fuels without any substitute has damaged the economic prospects for all western countries. This policy has also made our adversaries view this as an opportunity to take advantage of the situation while we are hoppled with economic inflation and shortages that are likely to become critical in the months ahead.

The mindset of this administration and the democrat party is that more government is always the solution. Get ready for possibly the worst days of this country in the coming months.