Irresponsible National Policy? This question partially is and partially is not a rant, but, I was a bit surprised to read the following article: http://news.yahoo.com/s/ap/20080421/ap_o... .

To summarize the article, Gas Guzzlers are a hit in China, with automakers seeing strong sales of big SUVs such as the Cadillac Escalade (Chinese version), which gets 12 mpg. Oh, and gas prices are capped in China at $2.90 a gallon. State oil companies are prohibited from passing rising crude oil costs on to consumers.

So, to de-rantify my question, how would you categorize this article:

1) The good ole Law of Supply and Demand
2) Irrational Exuberance
3) Irresponsible National Policy
4) Global Gas Prices - You Ain%26#039;t Seen Nothing Yet!
5) Something else?

But I still think they should remove the price ceiling on gasoline to discourage people from buying gas-guzzlers, just as I think we should remove our oil company subsidies in the US for the same reason.

Asker's Rating:

Yes, sounds true and reasonable. I guess Communist economies/societies can maintain such policies (price ceilings) for a certain amount of time, but I suppose, eventually, that too will become unmaintainable and then their consumers will be faced with the harsh realities of market pricing.

Other Answers (7)

• 3 its ironic that GM sold more Buicks in China last year than in the U.S.
  but we%26#039;ve cleaned up our air %26amp; rivers %26amp; part of the price we paid for that was moving our manufacturing facilities (%26amp; production jobs) to China %26amp; similar places so maybe we%26#039;re still ahead of the curve.
  as their standard of living %26amp; income expectations continue to rise ,the pendulum will continue to swing %26amp; their day will come eventually.
• Completely agree, another thing that is rediculous is that the US has the lowest standards for Miles per gallon in cars in the world (most get 20-30) and the rest of the world, mainly europe, are driving carst that get 60-80mpg. We have the technology to go at least 70mpg.
• 4: And good fortune for the Chinese public. Gas is $8 a gallon here in the UK and will eventually be the same (and more) in China. They%26#039;re just enjoying their current economic growth %26amp; prosperity in the same way we did.
• Every jurisdiction that ever imposed price controls on any commodity has also experienced acute shortages of that commodity, so the price cap on the price of gas is indeed an irresponsible policy.
• I think that every country in the world should have a good efficient public transport system up and running criss-crossing the country, with fixed prices on tickets. Ban all private cars because they are the gas gusslers!
• Proof that pandering politicians exist everywhere.
• ~~~~
  
  Supply and demand with price freezes does not work.