Thread: Ronald Reagan
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Old 02-09-2011
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randolph randolph is offline
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Default supply and demand?

Tracy
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Simple supply and demand. If you try and unbalance the supply and demand equation then you're left with something unsustainable
I am not sure what you mean here.
OK, lets say the oil rig strikes oil. The contractor and the workers get paid for the time they drilled. The guy who got the financing now owns the well and its output. Presumably the value of the oil is far beyond the cost (labor) of creating the well. The guy is now extremely rich. He pays off the financing, buys a yacht (built by labor) and an expensive house (built by labor). Financing the well was a risky gamble, it could have been dry and the people who financed lose their investment (stored labor). Capitalism is taking risks and yes the system rewards capitalists for taking risks.
In Norway, however, things are very different. The state owns the oil rights and does the drilling and sells the oil. The benefit of this goes to the people of Norway. Everybody has excellent health care in a well run corruption free state free of extremely wealthy corporations buying off and corrupting the legislature.
I know that won't work here in this big country but it's nice to think about. Imagine the wealth there would be in this country if we all owned the oil. There would little or no taxes and we would all be happy, right?
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