Milton Friedman on Energy and oil
Time and again, I have castigated the oil companies for their hypocrisy, for loudly proclaiming their allegiance to free enterprise yet simultaneously undermining free enterprise by seeking and getting special governmental privilege (percentage depletion, prorationing of oil, import quotas, etc.). Yet we shall only hurt ourselves if we let resentment at their past misdeeds interfere with our adopting the most effective way to meet the present problem.
Context. From a Newsweek column written about a month into the Arab oil embargo of 1973, while retail gasoline and fuel oil prices were still held down under the price controls President Nixon began on August 15, 1971.
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Milton Friedman, “Why Some Prices Should Rise” (Newsweek (November 19, 1973); reprinted in full in the Congressional Record, Extensions of Remarks, November 29, 1973, p. 38775, introduced by Representative John H. Rousselot of California, who gives it as “an article which appeared in the November 19, 1973, issue of Newsweek”, 1973), Congressional Record, November 29, 1973, p. 38775. https://miltonfriedman.org/quotes/castigated-oil-companies-hypocrisy-special-privilege-1973
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But, you will say, rationing by price hurts the poor relative to the rich. What of the poor man with his old jalopy as the only way to get to work. The answer is straightforward. If high oil prices impose special problems on some, let us provide funds to mitigate their problem. Let us not impose compulsion and waste on 95 per cent to avoid special measures for 5 per cent.
Context. From a Newsweek column written about a month into the Arab oil embargo of 1973, while retail gasoline and fuel oil prices were still held down under the price controls President Nixon began on August 15, 1971. Later in the column he adds that what is called for is higher prices for oil products “relative to other products—not general inflation.”
Why Some Prices Should RiseColumn, 1973, Newsweek (November 19, 1973); reprinted in full in the Congressional Record, Extensions of Remarks, November 29, 1973, p. 38775, introduced by Representative John H. Rousselot of California, who gives it as “an article which appeared in the November 19, 1973, issue of Newsweek”, Congressional Record, November 29, 1973, p. 38775Checked against the sourceRead the originalThe most effective way to cut consumption and encourage production is simply to let the prices of oil products rise to whatever level it takes to clear the market. The higher prices would give each of the 210 million residents of the U.S. a direct incentive to economize on oil, to find substitutes for oil, to increase the supply of oil.
Context. From a Newsweek column written about a month into the Arab oil embargo of 1973, while retail gasoline and fuel oil prices were still held down under the price controls President Nixon began on August 15, 1971. Later in the column he adds that what is called for is higher prices for oil products “relative to other products—not general inflation.”
Why Some Prices Should RiseColumn, 1973, Newsweek (November 19, 1973); reprinted in full in the Congressional Record, Extensions of Remarks, November 29, 1973, p. 38775, introduced by Representative John H. Rousselot of California, who gives it as “an article which appeared in the November 19, 1973, issue of Newsweek”, Congressional Record, November 29, 1973, p. 38775Checked against the sourceRead the originalA voluntary army would preserve the freedom of individuals to serve or not to serve. Or, put the other way, it would avoid the arbitrary power that now resides in draft boards to decide how a young man shall spend several of the most important years of his life—let alone whether his life shall be risked in warfare.
Context. From a paper he gave at a conference on the draft at the University of Chicago in December 1966, arguing that the United States should move to an all-volunteer armed force. His case is for peacetime: in the same paper he grants that “for a major war, a strong case can be made for compulsory service.” This is the second of the advantages he lists, under the heading “Individual freedom”.
Why Not a Voluntary Army?Journal article, 1966, Paper for the conference on the draft held at the University of Chicago in December 1966, sponsored by the Ford Foundation and chaired by Sol Tax; reprinted in full in the Congressional Record, House, March 9, 1967, pp. 6098 to 6100, inserted by Representative Donald Rumsfeld among four conference papers on a voluntary army., Congressional Record, March 9, 1967, p. 6098Checked against the sourceRead the original
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