Wednesday, September 21, 2005
Gas Prices
Aren't companies supposed to price gouge? That's were you find the market price which is the price to maximize profit. If a gas company finds that market price first, they will gain an advantage over the others. If they charge too much, their profits will go down because some people will need to find alternates to gas. This affects shipping prices which affects the prices of everything else, but if this is really a problem, we will have to make some sacrifices with the products that we buy. Maybe it will affect how far we are willing to commute or how often we visit family. Maybe we will need to give up renting a movie so that we can buy groceries. Why should we hold gas companies to a higher standard than any other market? That is a result of scarcity, not greedy businessmen.
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3 comments:
This is an anonymous comment. This confirms that non-blogger people may comment.
Just a generic observation I guess (although not as generic as the anonymous comment), but I suspect that many folk's problem with "price gouging" at the gas pump stems from gasoline being almost a necessity, like basic staple foods. I can almost buy that, except for when people driving RV's are complaining that gas is too expensive... ;-)
I think you are right, though. It saddens me to read of so many people complaining about their situation, particularly in the wake of the hurricanes. Don't get me wrong—there are some awful situations. But to expect that someone else must always take care of us, and that bad times shouldn't ever come our way, and that gas should always be inexpensive, is simply foolish and childish.
Granted, I know I complain about my own set of disappointments far too much. I hope that I'm learning to see that God's providence and guidance is far bigger than my plans, though.
Oh...one other thought. I bet it is easier to criticize gas companies, and hold them to a "higher" standard for a few reasons.
1) Gas is utilized by almost everyone. It is easier to complain as part of a big group. Nobody understands you if you say dealers of Turkish purple staplers are price gouging. 2) We are jealous of those who made it big on oil, and assume that they are just trying to take advantage of us personally.
Okay, enough thoughts for now. :-D
Thanks David. Way to be understanding and humble while still being right.
I am just afraid the government will put a price ceiling on gas, or subsidize it, both of which will have negative effects on the economy (if that crazy capitalist economic theory is correct). But its easier to score political points by appearing to answer people's complaints than it is to try to educate them about a better solution.
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