OT - Gas to hit 4.00

Jonathan Ellis jonathan at carnageblender.com
Wed Aug 31 14:52:26 MDT 2005


On Wed, 31 Aug 2005 14:14:57 -0600, "Grant Shipley" <gshipley at gmail.com>
said:
> I just had to vent and I know the PLUG loves OT conversations. :)
> 
> http://money.cnn.com/2005/08/31/news/gas_prices/index.htm
> 
> Does our government not realize this is killing the average American?

We have what's called a market economy.  Right now, increased demand
worldwide is driving prices up.

If gas gets too expensive, people will find alternatives and/or use less
(e.g. by bicycling, taking the bus, or telecommuting to work instead of
driving).  Reduced demand will bring the price down.  (You do realize
that gas has been going for far more than $4/gal in Europe for _years_,
right?  Case in point.)

Some things aren't very susceptible to reducing demand like this, but
gasoline isn't one of them.

Demanding the government intervene and try to accomplish something the
free market is inherently better at (setting prices) is tempting but
foolish.

-Jonathan



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