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Gouging, Free Markets, and the Psychology of Fuel Prices

By Paul Schwennesen -- August 15, 2011

Four-dollar diesel (forgive an agricultural bias) is an ugly thing–but not the ugliest of things. To grossly paraphrase John Stuart Mill, the state of moral feeling that thinks that government should “keep prices reasonable” is far worse.

Prices at the pump are (for the most part) an elegant demonstration of market forces at work. It should come as no surprise then, that they tend to raise the ire of those who distrust markets and favor their manipulation. (And what goes up also comes down–the trend is positive right now.)

Whether it’s because the prices are so prominently displayed, or because so many of us so often pay them, fuel prices are a tempting target for the command-and-control set.

Economies (and Psychologies) of Taxation

The keen attention we Americans pay to fuel prices is both a blessing and a curse.…