The "market" drove prices up and people had electric bills of over 1000 dollars, and its clear these were inflated energy prices.
Perhaps government should be involved, to protect the consumer.
2007-09-11 03:05:38 · 8 answers · asked by Anonymous in Politics & Government ➔ Politics
If you're talking about the issues in California, the problems were caused because the supposed "deregulation" was nothing of the kind. The law as written was not deregulation but just a very poorly re-regulation that allowed the unscrupulous tactics to which you refer. If the law had been actual deregulation, much as the legislators in Pennsylvania did with good results, then the whole fiasco never would have happened.
Did you know that it was a Democrat who actually sponsored and championed that bill with the unanimous consent of both houses of the California legislature?
2007-09-11 03:20:11 · answer #1 · answered by thegubmint 7 · 0⤊ 0⤋
Yes, the "free market"prices were driven up by unscrupulous traders(yes, the futures market). So, what should have been competitive prices instead were manipulated. I very much believe in a free market but it is not a free market when a few control prices.
A free market allows entry of small businesses into the market. That is not what we are seeing.
Enron was certainly not just an accounting failure. If everyone at fault actually went to jail, we'd have to build new ones. It was a financial failure too-of the relationship between investment bankers and analysts and futures traders and deregulations. Many, many got rich and never went to jail.
Rent "Enron,The smartest guys in the room".
2007-09-11 03:15:03 · answer #2 · answered by Middleclassandnotquiet 6 · 1⤊ 0⤋
The problem is government involvement. A very fine example of socialism as well. When i think about energy production, i think of Independence. I even started a successful journey on helping to achieve this, or so i thought. To learn only that it cost me dearly for my noble endeavor. The energy industry is not as deregulated as you might think. You want a "true" belief to focus upon? Then begin to think about energy independence. This will also push safety, reliability,efficiency, cost effectiveness and conservation as well. Now i am beginning to realize how Nikola Tesla must have felt. In other words it needs to be FULLY Deregulated and at the same time the people need to begin educating themselves on all the options of available, cost effective as well as safe and efficient energy production. But do not forget to factor in redundant measures as well. Ever get a chance visit the Department of Energy's website. See where most of their focus is right now. Clean coal hybrid power production facilities. Hmm.
2007-09-11 03:20:11 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No, deregulating the energy industry was a huge mistake. Aside from Enron, California had its fair share of power outages and price gouging. It proved that government involvement in regulating the energy industry was a GOOD thing.
2007-09-11 03:14:28 · answer #4 · answered by Pfo 7 · 1⤊ 1⤋
Enron was an accounting failure - not a market failure. Share prices were based on illegal accounting prices. I'm not sure if we need government regulation of the energy sector but we do need government audits on publicly traded companies.
2007-09-11 03:11:11 · answer #5 · answered by CHARITY G 7 · 2⤊ 1⤋
Electric bills over $1000? Where could they possibly be that high? Deregulation is a good thing as long as there is adequate competition in the market..........
2007-09-11 03:11:37 · answer #6 · answered by Brian 7 · 0⤊ 2⤋
I recall a swift government reaction to Enron.
2007-09-11 03:11:06 · answer #7 · answered by ? 7 · 4⤊ 2⤋
You will have to wait. Bush will do nothing to harm "Kenny boy's" company. Bush never said he wanted to help the people, just Cheney, Rove & Co.
2007-09-11 03:12:31 · answer #8 · answered by PATRICIA MS 6 · 1⤊ 2⤋