The Role of the Economist in Natural Resources Policy

Extract

On April 5 of this year President Jimmy Carter addressed the Nation on energy. After a brief introduction the President said:

“Federal government price controls now hold down our own production and encourage waste and increase dependence on foreign oil.”

The President then went on to say:

“–I have decided that phased decontrol of oil prices will begin on June 1 and continue at a fairly uniform rate over the next 18 months. The immediate effect of this action will be to increase the production of oil and gas in our own country.”