Yes, They Are MoronsJune 19, 2008 Tim WorstallEuropean Union7 CommentsNo, really. The EU is going to make us all love it by fixing fuel prices. Seriously. previousPolly\’s GranpanextTimmy Elsewhere 7 thoughts on “Yes, They Are Morons” So Much For Subtlety June 19, 2008 at 10:49 am Are we all going to be married to Giselle Bunchen as well? I don’t see why they should stop at half measures. Admittedly I already look like George Clooney, but I think that a Giselle in every bed is the obvious next step. Surely that is not asking too much of their powers? Matthew June 19, 2008 at 10:52 am But it’s not ‘seriously’, is it? I note, however, that this is the proposal of many who want to adjust fuel duty to compensate for the ups and downs in the oil price, which is the same thing. ChrisM June 19, 2008 at 11:09 am “I note, however, that this is the proposal of many who want to adjust fuel duty to compensate for the ups and downs in the oil price, which is the same thing.” No its not the same thing at all. To the customer it may look like the same thing, but to the producer it is anything but. If a government fixes the price at which a producer can sell something, then that producer may well stop producing (see Venezual or Zimbabwe). If the producer is free to sell at the price they want, with the state altering the amount of tax they take accordingly then producers will still produce. I can see some problems with this, such as producers selling for a higher price, knowing that the state will pick up the slack, but they are definitely NOT the same thing. Matthew June 19, 2008 at 12:23 pm But no-ones proposing such an edict, Chris. If governments ever took action to ‘fix’ fuel prices it would be through the mechanism I mention. ChrisM June 19, 2008 at 2:39 pm Well from a quick reading of the “seriously” link, I didn’t understand the mechanism to be about tax relief for consumers when the cost of fuel is high. “2. The revenue generated by this tax should be returned on a proportional basis to the various economic sectors in each Member State;” This does not sound the same as “however, that this is the proposal of many who want to adjust fuel duty to compensate for the ups and downs in the oil price, which is the same thing.” The former seems to be about still taking the tax off the consumer with some vague promise to give some money to unspecified people (various economic sectors, whatever that means), whereas the latter means not taking it of the consumer in the first place. Matthew June 20, 2008 at 10:07 am But you take it to mean they are going to fix the price of fuel producers can sell at? It’s a proposal from two communist Portuguese MEPs, I’m a little unsure how it has become ‘the EU is going to do it’… ChrisM June 21, 2008 at 2:56 pm But Matthew I never mentioned the EU at all. I merely disagreed with your assertion that the proposals being made were the same as proposals to adjust fuel duty to compensate for the ups and downs in oil price. To debate me on anything else is to put words in my mouth. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.