Quote:
Originally Posted by The Yen Man
It's funny how when gas prices rise and O&G companies make a profit, they're gouging, but when they drop and O&G companies lose money, it's the market. So if people agree to a price ceiling for gas, would they also agree to a price floor, where if it ever dips below a certain amount, then O&G Companies are protected from losing money and we the consumers end up paying more money to ensure that these same companies are still profitable? It goes both ways you know.
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I agree with you in theory. I think the big reason why people get so up in arms about gas prices is that no one likes to pay more for something that cost less in the past. It has nothing to do with rational and all to do with emotion. If you've ever worked retail in a restaurant or grocery store whenever the price goes up for anything the usual customer complaints are 'it's been $3.50 for years, you're ripping us off,' regardless of whether or not there's a good reason for it. My take is that the price, is what it is, and if you're not willing to pay it, don't.
Then there's the arguement that people NEED to consume fuel in the habits they've becomed accustomed to. In reality if a gun was pointed at their heads to reduce fuel consumption, they would find a way. No one is 'entitled' to their lifestyle of free mobility in a car and there are alternatives. They may be severly less attractive than having your own car but if cost was really that big a factor you just wouldn't drive as much. As a retailer you can only charge so much until either a competitor supplies more to meet the demand or the consumers buy less and you make less money. There is an equalibrium here.