People don’t understand gas prices
I’m getting really sick of people complaining about gas prices and blaming it on the “evil corporations.” Could there be a more socialist way of thinking? Have the media and our ridiculously poor government indoctrination camps (read: public schools) really conditioned so many of us to view ourselves as victims of capitalism instead?
Do people even have the slightest idea of how supply-side economics works?
Gas prices aren’t just some arbitrary number. They are based in full on the average wholesale price that a dealer (read: gas stations) paid for each gallon of gas in their inventory.
Those wholesale prices are based on what the gasoline suppliers (ExxonMobil, Shell, BP, etc.) pay to refine crude oil, which is based on the price of crude oil - which is directly based on the Oil Futures Market’s price for a barrel of crude oil.
The Oil Futures Market is DIRECTLY related to conditions in the middle east and OPEC and Russia’s MONOPOLY on crude oil.
We also pay more for gas because China’s and India’s demand have DOUBLED in the last 5 years.
I can’t believe how many people see gas prices as the result of “evil corporations,” when in fact, gas prices are the direct result of supply and demand!
Casey
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Comments
There was an excellent segment by John Stossel on 20/20 about the irrational panic set up by politicians and the media over “record high” gas prices.
I’ll see if I can’t find it on the web and pop it up.
Too many people have zero working knowledge of how our country works… couple that with the spoon feeding of “profit=greed” by the left and the media giants and you’re left with a complacent population who will let you run right over them no matter what the cost to them.
Hate paying $3 a gallon for gas? Let the government step in and see how much you like walking when the price triples.
Agreed. I don’t understand why so many people seem to be opposed to a free market. Small government is the best government.
You’re absolutely correct and this message really needs to be broadcast on public television too. Another thing to consider when talking about gas prices is that the individual gas stations, by and large, have no say as to the price of their gas. More often than not their profit margins are razor thin and the prices really are set by corporate, like you said, based on how much the materials _cost them_.