An old mistake: why are they trying to punish the oil companies?

It takes a lot of political courage to tell an outraged public that the invisible hand of the free market works better than windfall-profit taxes, price controls, or federal interference with corporate investment decisions. It's worth remembering that during the most explosive oil-price increases in history, and with the prospect of a tough reelection fight on the horizon, Jimmy Carter used his executive powers to remove the price controls he had inherited. And President Carter was eventually beaten by a candidate--Ronald Reagan--who promised to go even further to liberate the industry from government interference. Today's Republicans in Washington could learn a thing or two.

Messrs, Taylor and Van Doren are senior fellows at the Cato Institute. Mr, Van Doren is the editor of Regulation magazine.

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