Thursday, May 04, 2006

"New" Old Initiatives of the Revolutionary Government

Our government does not give us time to think about all the new initiatives coming every hour. One of them, for instance, is buying 500 tractors for villages - no surprise but sorrow. There appearing several questions for this but let's limit our time vaste with the next "invention":
Price of electricity is increasing - 'at last' - can say suppliers - 'they understood we need a help'. In reality after 2002 the price already increased - 12,8 tetri in 2002 was 6 US cents but now it is 7 cents. Now it will be 8 cents. But let's leave this rethoric - it is not a main problem. The main problem is that it is not again market price! (Some "Austrians" would say it is not a price at all.)
Here is another big problem of magic circle:
- consumers - demanding from the government lower prices
- government - saying it is not its duty to approve prices
- regulator - checking price content and defending consumers
- supplier - trying to get more
And who believes the regulator is for consumers and against suppliers? Or is the regulator out of political control? Is free price really dangerous for consumers?
Command prices are good both for government and suppliers. The regulator is the only chance for suppliers to increase prices instead optimisation and improving effectiveness or quality. This is the only chance.
The second genius idea is to punish people for consuming more electricity - use more - pay more.
That is why democracy fails everywhere. Need more "power" but if more "power" is paid more next elections decide who is more "powerful".
Finish with it! Get free prices!

No comments: