Socialism is alive and now counts Somerset, Kentucky as one
address. Apparently the small town has felt the “pinch at the pump” of high gas
prices for years, and decided to take action. Action in this case involved
taking taxpayer money and establishing a gas-only filling station for the
expressed purpose of lowering the price of gas in the area.
The mayor insists the city isn’t “out to make a profit.”
That’s one promise the politician will have no problem keeping. The gas station
itself may break even on its own sales, but it can’t help but reduce the income
of other private businesses in the area, the ones that pay federal, state, and
local taxes which, among other things, will be used to keep the gas-only
station pumping away.
The locals that did not work at gas stations or for gas or
oil companies seemed quite happy about the new gas station. One remarked that
they were tired of seeing business leave town to go to other locations where
gas tended to be cheaper. I have to wonder how happy people will continue to be
as the observations continue. Suppose that business starts leaving town because
the hotel rooms are cheaper a few miles down the road, or the groceries, or the
food at the diner? There could be a lot of places where the government could
step in to help keep the business in town. The only ones who would lose out are
the businesses.
Then again, there’s no real need for the government to start
from scratch as they did with the gas station. All they would have to do is set
price controls for the local businesses, and that would accomplish the same
thing. If you are too young to remember the hour long waits to fill up your car
in the 70’s, the principle applies to just about anything. Think about going to
the county fair on “wristband” day. Price controls result in shortages and
rationing. The only real question is how long it takes for the situation to get
really ugly.
I remember reading a particularly gruesome scene from a book
a long time ago: A group of people was out on a fishing boat when they came on
a group of small sharks. The man who owned the boat caught one of the sharks,
and slit the animal’s belly with a sharp knife. The animal did not die right
away, but began to bleed. The man then threw the shark back into the water.
True to their nature, the other sharks homed in on the blood, and started to
attack their comrade. As they did, little bits and pieces of him got loose and
began to drift just from all of the activity. The original shark, the one with
the slit belly, went after those. Even though it was being attacked and killed,
it couldn’t overcome its primary instinct which was to feed, even if that meant
eating itself.
The town of Somerset, Kentucky has decided to eat itself. It
may not be quick, but unless they change course, it will happen, and it will be
ugly. The only real question is how many others will come to feed as it’s going
down.