Friday, December 09, 2005

The Invisible Hand of Corn

With natural gas prices through the roof, consumers are finding cheaper alternatives.

Apparently, corn is much cheaper than natural gas and dealers that are selling corn burners are out of stock and are already taking orders for next year.

This will reduce the demand for natural gas and prices will stabilize. The price of corn could even go up slightly if the demand is high enough from those people using it as a heat source to put a dent in the market.

This is being done WITHOUT government intervention. There aren't corn burner subsidy programs, no corn lines or price controls.

The market does work and it works faster than the government can possibly compensate.

This works for every segment of every industry. In this case, it would work even better if it were not for farm subsidies.