In the beginning, there were institutions...thoughts on institutions, economics and other random topics.
Friday, October 16, 2009
Should OPEC be Compensated?
Economically, there is no argument for giving oil exporters a handout to compensate for our ability to reduce our own demand, thus driving down the price. Remember, they don't give us a kickback for all of their supply-reducing behavior that drives up the price. But, there might be some political reasons to make such a side-payment.