The electricity crisis under Governor Gray in the U.S State of California was a good example of failure of neo-liberal ideology wasn it?
It’s common for critics of the free market to point to some historical economic problem as an example of market failure, when in fact the real cause of the problem is government mismanagement. The California electricity crises under Governor Gray made headlines around the world after the price of electricity was hiked to intolerable levels shortly after an apparent privatization program. In fact, only the distribution of electricity was privatized. Production was not. There was a shortage on the production side because of government environmental regulations that had prevented new plants from being built. In addition, the government had purchased futures contracts to freeze prices at a time when prices were at ridiculous levels. The California power crises was yet another example of the failure of socialism.
