ROLLING BLACKOUTS: GOVERNMENT INTERFERENCE IS TO BLAME
March 20, 2001
MARINA DEL REY, CALIF.--California's rolling blackouts--the first widespread ones since World War II--are an eloquent example of the folly of government interference in the economy, said the executive director of the Ayn Rand Institute.
"Rather than blame 'greedy' capitalists or inefficient energy producers and distributors, we should look at the real culprits--California's governor and legislature," said Yaron Brook. "Their so-called deregulation plan, which simply reregulated the power industry, did nothing but put more roadblocks in the way of power production. Predictably, the 'deregulation' of the California power industry did not create a building boom of power plants and increase the number of new energy providers. Quite the contrary--the state's independent producers are going out of business."
Brook added that what should equally disturb Californians and all Americans is that the state's "solution" to the power crisis has been to become more involved in funding and directing power generation and distribution.
"For all intents and purposes, Governor Gray Davis has been slowly nationalizing the California power industry--with the consequences of skyrocketing prices and blackouts," said Brook. "The only solution to the energy crisis is to in fact deregulate the power industry--starting with the elimination of price controls. Let the power providers be free to solve the problem without government interference. If freed, the power providers could easily end the blackouts."
Ayn Rand Institute executive director Yaron Brook is available for interviews.
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