9
Sep
2005

Not that '70s show

Washington Times
by Lawrence Kudlow

09/08/05

The story of Hurricane Katrina is first and foremost a tale of Mother Nature's wrath and the resulting human misery: thousands of deaths, destroyed homes and businesses, family break-ups, psychological demoralization and other hardships too painful to recount. But Katrina is also an economic story in terms of its effect on U.S. commerce, trade, energy, shipping and overall growth. Here the doomsayers and pessimists will again be proven wrong. This is not the 1970s. After more than 20 years of deregulation the U.S. economy is flexible and resilient -- even in the face of short-run shocks. ... In the 1970s, government-applied price controls and supply rationing created a dysfunctional economy that looked like a pinball machine on permanent tilt. Today, with few exceptions, price controls have been rejected. Auto and truck drivers would rather pay $4 a gallon for gas they can get, than have government mandate $2 a gallon for gas that's unavailable.

//www.washtimes.com/commentary/20050907-091251-8730r.htm


Informant: Thomas L. Knapp
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