Should the government create price floors to reverse slumping oil prices?

  • The Government Should not make a price floor

    Price floors, according to basic economics, are very inefficient. The price floor creates a shortage and does not actually work. The government could also subsidize the price of oil to make it less. THe price floor is not necessary and detrimental to the economy. THat's the real story mate. You know the truth.

  • No, the government should not creare price floors on oil.

    The government should not create price floors to reverse slumping oil prices because that unnecessarily causes gas to cost more. The downturn in gas prices is welcome for most people because they can spend less of their budget on something they need, especially after years of high gas prices. The oil industry is so large and has enough money that they do not risk failing even if the cost of oil is lower for a relatively short amount of time.

  • Free market wins

    At the moment, we operate a free market with very few government restrictions. By using price floors, this will have an impact either positive or negative on other markets which then may have another knock on effect. To keep the market stable, I think that the less meddling in the economy the better.

  • That Would Create Oversupply

    No, price floors wouldn't solve the problem because it would be throwing good money after bad. When there are price floors, too many people want to create a product because its selling price is set artificially high. What happens, then, to all of the product that doesn't sell? It's wasteful just to allow it to go to waste. It's also inefficient in the market. If people don't want to buy it the producers should stop mining it.

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