Simple Economics for the Simple -- Why Profit Makes the Business World Go Round Or Who Needs Their Stinking 500 Million


Alright, we've had a couple of weeks consumed with left wing business experts explaining that no matter how much regulation you put on an industry it won't change its investment.

All this is really voodoo economics in its real form, where cause and effect are imagined rather than studied.


Some of this is the result of our flawed educational system but a large measure of it is simply tap dancing to convince wage earners that changing the rules for business in several directions at once will not make them reevaluate their investment.


If you follow this link to the Rocky Mountain News you will see a little more clarity;


"But Colorado's efforts to overhaul gas drilling rules could make the business climate uncertain, lowering future production and its value. Hock said that EnCana this year diverted $500 million of investment, originally intended for Colorado, to Texas and Wyoming, partly because of the current regulatory environment. "We hedge our production, so we are able to withstand fluctuations in terms of prices. The market will take care (of prices) over time," Hock said. "We will continue to operate here. But in terms of our level of activity, and where we allocate capital, certainty is a big factor." Click on the quote to go to the interesting article written by Gargi Chakrabarty.

We recognize that most of our regular readers understand this anyway but we like to give them tools to assist and educate our less savvy brethren whom we always hope will see the light.