Free markets are essential and they have many benefits, but they are not perfect. Many economists, including economist Peter Dawson, agree. The global financial crisis, along with those infamous, Frankenstein-like, mortgage-backed securities and the massive, publicly-funded bailouts for failed free market institutions demonstrate this.
Another example, according to Dawson: the free market and oil. The mantra is, it's best to let the market determine the price of oil. Economist Dawson is doubtful, because oil price swings create economic havoc.
Consider the predicament airline, delivery, and related executives who manage businesses that have a major fuel cost face: you know that this year the price of oil is going to be somewhere between . . . $30 and $110. "Now that clarifies things," Dawson laughs. "Piece of cake."
Also, consider what oil industry executives face: try making and managing a 5-year or 10-year exploration budget. What's the price of oil going to be in three years? $20? $50? $75? $150? "Nobody knows, and it's creating havoc in exploration circles," Dawson said.
Another example, according to Dawson: the free market and oil. The mantra is, it's best to let the market determine the price of oil. Economist Dawson is doubtful, because oil price swings create economic havoc.
Consider the predicament airline, delivery, and related executives who manage businesses that have a major fuel cost face: you know that this year the price of oil is going to be somewhere between . . . $30 and $110. "Now that clarifies things," Dawson laughs. "Piece of cake."
Also, consider what oil industry executives face: try making and managing a 5-year or 10-year exploration budget. What's the price of oil going to be in three years? $20? $50? $75? $150? "Nobody knows, and it's creating havoc in exploration circles," Dawson said.
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