Oil Shocks, Price Controls, and War | The Marginal Revolution Podcast

In this second installment of their three-part series on the 1970s, Alex and Tyler unravel the economic and geopolitical forces behind the oil shocks that upended global global markets, triggered economic crises, and forced a dramatic reshaping of U.S. energy policy. Along the way, they debate whether the shocks ultimately led to long-term benefits like the rise of alternative energy and the fracking revolution, or if they merely prolonged economic pain. The conversation ranges from OPEC’s newfound power and the Yom Kippur War’s role in reshaping oil markets to broader questions about how shocks like these influence policy in the long-term. They close by reflecting on how the policy failures of the 1970s paved the way for Milton Friedman’s rise to prominence, and why his ideas-born from an era of rampant inflation and misguided price controls-remain crucial for understanding today’s economic challenges.
Recorded July 17th, 2024
Transcript and links: www.mercatus.o...
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[@lib1007]

Amazing balanced discussion, thank you guys.

[@Libertyfudge]

On the topic of different state oil prices, I live in Arizona where gas is ~$3.50 per gallon and pretty consistent in price across the greater Phoenix area; I went to California for vacation last weekend and saw the following prices within San Diego: ~$4.50 in San Diego next to Mexican border, ~$5.50 in the wealthy area of Corandao, and >$6.00 in downtown San Diego by the airport

[@terencewinters2154]

By the time the market corrected for rural mail carriers in 2008 many were bankrupt or dead. Because they were being paid .50 cents on the dollar in gas and repairs driving their own "required " vehicles . Ie they were "subsidizing " mail delivery .that's 80, 000 people . Bad crushing policy combined with untouchable pensions funded 80 years out equaling a debt carrying charge . Because no one would live 80 years on. Terrible republican economics. Oil wars now have dolloped 6.5 trillion $ in national debt .

[@ds6914]

Alex blinks an awful lot when climate change comes up. I think he's feeling shame.