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Many of us remember the oil shortages of the late seventies. They caused more than just the inconvenience of occasional gasoline rationing. Several elderly people actually died in the New York City area because of a lack of heating oil. Some people thought it would only get worse, and we would run out of oil completely before long.

Interestingly, at the same time, gold and other things much rarer than oil were available to anyone who wanted them. This gives us a clue to what causes an oil shortage, or any other shortage. It is usually just one thing.

Oil Shortages Are Caused By Price Controls

Actually, almost all long term shortages of basic commodities in a modern economy are caused by price controls. Other than economists, not many people know this. They clamor for price controls when prices rise, and these controls then cause shortages. They do it in about ten ways. Examples of three of these ways follow.

First, under price controls, the law said that oil producers couldn’t sell oil for more than a certain amount. Of course they immediately closed wells that were producing at a cost higher than that. Reducing the supply sure isn’t a cure for a shortage, is it? But then you wouldn’t pay your boss to work for him either, so why would a company pump oil at a loss?

Second, because they had a price limit, they sold more to closer customers. This saves on delivery costs, and explains why heating oil was in short supply in New York, which is far from the major oil fields. Anyplace farther away had worse shortages.

Third, because prices were held artificially low, while some people couldn’t get heating oil or gasoline, other’s wasted gas on pleasure trips they might not have taken if the price were higher. This further reduces supply. If gas was $20 a gallon you might travel less, right? The same principle is true incrementally at any price point.

The Solution To Oil Shortages

The tragedy of price controls is that it forces a mis-allocation of resources. Normally the market determines where the oil goes. If it is to expensive, people cut back on pleasure trips, but no elderly folks die for a lack of heating oil. The high price also brings about the resolution, because now it becomes profitable to drill more wells, to make electric cars, and otherwise develop new technologies.

Imagine for a moment the extreme. If the government said no gas could be sold for more than 30 cents a gallon, no other transportation technology could compete with gasoline-powered cars, so none would be developed. Meanwhile, no new wells would be dug, and we would run out the existing supply. With no alternatives developed, it would be a catastrophe. Letting prices go up and down naturally is the solution to this or any oil shortage.

Some of the rarest things on this planet are available to you all the time – if you will pay the price. It is said that all the gold in the world could be put in a large barn, and yet you can buy gold anytime you want. It is price controls that cause shortages. Remember that the next time there are shortages in some basic commodity, despite all the government’s best efforts. All their efforts are just politics, and if there is an oil shortage, you can be sure that they caused it.

Steve Gillman has been exploring new ideas for decades. Visit his site for invention ideas, business ideas, story ideas, political and economic theories, deep thoughts, and more. Get a free gift too: New Ideas (www.999ideas.com)

It was in England in 1941 that British scientists John Whinfield and James Dickson first produced polyester fabric. However, polyester material did not begin to be made in the United States until 1950 when American company, Dupont, bought the patent rights.

The ability of poly material to withstand both fading and shrinkage has made it the most widely utilized cloth, since 1960, in the manufacturing of clothes. Polyester also became a popular choice in the production of table cloths, chair coverings, placemats, table skirts and aprons. The use of 100% polyester cloth in the production of napkins was not as well accepted as it was for the production of garments and home decor. 100% poly napkins lacked both absorption and the feel of cotton which, at the time, was associated with costly table linen.

Enter spun polyester cloth. Spun polyester was initially developed for industrial use and home furnishings. When Johnston Industries attempted to produce a spun poly they could use in boat coverings the end result was a fabric that was lighter in weight with an improved feel to it. While dying this new version of spun polyester, they noticed that the fabric became even softer, making it perfect for tablecloths.

This discovery was considered to be so important that Johnston Industries stopped their development of boat coverings. Bob Pomeranz, an expert in textiles, took on the project of improving spun poly cloth at Johnston Industries. Bob’s expert knowledge of spinning machines allowed him to spin a fabric free from pilling, the wretched fiber clumps that detract from a cloth’s appearance. Johnston Industries’ end product was a durable tablecloth resistant to shrinking with the power to keep its color and release soil.

Spun poly could now be used to make table linens with the texture of cotton material. Best of all, unlike cotton, a spun poly table linen would continue to be colorfast , even after being washed many a times. To a greater extent, the more you washed a spun polyester table cloth the softer and better it would feel to the touch.

Textile manufacturers discovered that spun poly was good, not only for tablecloths, but in the production of chair coverings, placemats, table skirts, aprons and even table napkins. In fact, where napkins made of 100% poly material lacked absorption – spun poly table napkins did not.

Whether 100% polyester or spun poly, both are important, not just in the house, but in hotels, nursing homes, hospitals and the party rental industry as well.