I saw two interesting things today. First, the Texas legislature, under threat of a summer session (which they hate even more than taxes) decided to fund some roads. They preserved the two-year stoppage on new toll roads, which makes sense given the governor's rush to give away the store, but at least they did not leave the entire transportation network unfunded. Of course it could all fall apart in the last hours of the Lege, but there's hope.
Second, I listened to part of the annual congressional hearing on gas prices while commuting this morning. I burned about 4 gallons of gas while experts told me that I should be glad a gallon costs only $3.00. Both government and non-government witnesses talked a lot about markets. They talked about them as if they believe they exist in the oil and gas business. I'm not sure. I see an industry with very few raw-material suppliers. The suppliers are so tightly intertwined with producers that no one can separate them. I see the same companies that produce the gas vending it. I see a flat demand curve, with commuters having no choice but to pay whatever is the going rate for gasoline. How market forces guarantee fair allocation of resources in such an environment is not at all clear to me. One telling thing about this alleged market is that, without exception, prices go down when congress holds hearings about them.
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