OT - Gas to hit 4.00
shane at hathawaymix.org
Wed Aug 31 22:45:00 MDT 2005
Andy Bradford wrote:
> In this case, if the price of crude oil goes to high, and hence the cost
> of producing gasoline which gets passed on to the consumer, the consumer
> will react by purchasing less or finding alternatives. If companies in
> this business want to stay competitive, they will be forced by market
> forces to become more efficient or go out of business. If this means
> raising the capacity, so be it. No one is forcing consumers to buy oil
> based products.
*Inertia* is forcing consumers to buy oil based products. People
already live in one place and work in another, and it takes a long time
to change employment or move to a new house. A lot of people are
already living at the edge of their income. If the market changes too
much too quickly, many will fall into poverty, simply because they can
no longer afford to commute.
Thus if you don't want people to starve, you need to have someone
regulating the market to a certain extent. Otherwise real people fall
through the cracks.
> I tend to disagree on this point. I think the market reacts much more
> quickly and deftly than any bloated governmental institution can do.
Yes, but sometimes quick change is exactly what you don't want. You
need someone with authority to react and smooth things out. Case in
point: the 70 foot crater on highway 6 that got repaired in days... by
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