Wednesday, January 03, 2007

You don’t say:

The FT has an article this morning about how Argentina’s energy sector is reeling after price controls were placed on fuel by the government.

In the article former energy secretary, Daniel Montamat, states that:

“low prices had led to low investment across the sector, which had held back oil production and refining capacity, resulting in insufficient diesel to meet demand.”

As Democrats start their reign, Argentina’s attempt at price controls and its disastrous affect should be a warning to Americans about Democrats goal of setting price controls on drugs. If price controls are put in place, investments in new drugs and the supply of current ones will decline making the flu vaccine shortage that took place a few years ago because of President Clintons price controls, look like a slap on the hand.

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