Heavy Foot of Government | Richard W. Rahn | Cato Institute: Commentary

Heavy Foot of Government | Richard W. Rahn | Cato Institute: Commentary: "The stimulus bill is objectively not working as promised by the advocates because, as many correctly warned, it is not possible for either individuals or governments to spend themselves into prosperity, nor will the political forces allow tax revenues to be spent wisely and effectively. If you look at the Obama officials' unemployment projections (with and without the stimulus bill), as well as the actual unemployment numbers, it is ironic that, if those in the Obama administration had not put forth the stimulus bill, the economy, by their own projections, would probably have been better off."

"If governments try to control prices, oil companies and investors will invest less in new production, thus reducing future supply, which will lead to higher prices in the future. Speculators are necessary to allow producers to shift part of the risk of their investments."

"And if speculation were as risklessly profitable as [the critics] presume it to be, then high gasoline prices would pose no problem because everyone would be raking in the riches by speculating in oil markets."