After Ron Steenblik of the group Global Subsidies Initiative commented on John’s recent ethanol post, I followed the link to the Initiative’s website. It’s good stuff for those of us who get fired up about subsidies. I did have a chuckle, though, when I saw this underwhelming Reuters piece about a shift in Egyptian energy policy:
“The trade and industry ministry said it will gradually reduce the subsidies, which are a main factor behind the country’s deficit…”
“…and then set prices based on the international market.”
I found it tough to get too excited about a statist regime finally being forced by a budget deficit to crudely mimic the forces of supply and demand. Just let the market do its thing!