Wednesday, June 04, 2008

Why students' protests?

According to Ross McLeod and Steve Hanke,
Other protests [against fuel price increase] have been driven mainly by student activists from various universities, whose tertiary education does not seem to have imbued them with the inclination to properly analyze the policy issues involved. Absent this analysis, the conclusion is always the same: Price increases are bad, end of story. Perhaps their response might have been different if the government had been able to couch the fuel price increases in terms of a reallocation of spending away from consumption subsidies and into investments in Indonesia's future.

HT: Ross

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