Talking to my dad on the phone about gas prices in Colombia and here (about the same) he was suggesting that it wasn't fair that he had to pay as much for gas in the 3rd world as in the 1st, partially because Colombia exports oil. Also, my son was in a conference last week on DC and among the places he visited was the Saudi embassy in which he learned that the gallon of oil there was about US$0.75.
The question: is it fair to subsidize (or not) gas/oil? I suggested to my dad that the markets (which determine the price of oil) aren't about 'fairness', at least not in the social sense.
Does it make sense that if a country produces something it should charge production costs to its people rather than market costs? Obviously by doing so it's loosing money but OTOH it could be seen as a financial stimulus to its economy*.
*This can be applied to any kind of subsidy
The question: is it fair to subsidize (or not) gas/oil? I suggested to my dad that the markets (which determine the price of oil) aren't about 'fairness', at least not in the social sense.
Does it make sense that if a country produces something it should charge production costs to its people rather than market costs? Obviously by doing so it's loosing money but OTOH it could be seen as a financial stimulus to its economy*.
*This can be applied to any kind of subsidy