More Bad Economics

I think that before anyone is allowed to make a speech on the floor of the senate they have to pass a freshman level economics course. Now politicians of both parties are pandering, by offering, among other things, a $100 tax rebate to consumers. The fall in tax revenue will be made up by, get this, raising taxes on oil companies. Of course, anyone who managed to stay awake for the first week of any microeconomics course will know that the price level and tax paid varies little whether it is paid by the producer of a good, or its consumer. These must be the same people who think that half of Social Security is a free ride, because it is paid by the employer.

Update: On Wizbang they have a hilarious conversation on oil prices with Senator Maria Cantwell, who is apparently stunned by the concept of supply and demand. Quite sad.

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economics