By Tim Worstall (Forbes)
Mexico is having a bit of consumer resistance to yesterday’s price hikes in the gasoline and diesel market in that country. However, the government is doing exactly the correct thing–things should be sold for what they cost to produce. It’s entirely possible that some people are too poor to pay the higher prices that result and the solution to that is very simple indeed–subsidise the poor people, not the item in question for everyone. This is also, oddly enough, one of the single most effective measures at beating climate change according to the International Energy Authority. All in all raising Mexican gas and diesel prices to the world level is a very sensible indeed thing to be doing. Sure, people may not like it very much but it’s still the right thing to be doing.