If people are driving less and less and there has been no decrease in opportunity to get our hands on oil why are the oil companies saying that the day after day record high prices for gas is based off supply and demand?
Capitalism is unfortunately driven by greed (not that I know of a better system in which to have American businesses run). But since we’re already not run in a true market economy anyways would there be harm in America admitting that we’re a slightly mixed economy and have the government step in on products and services that effect the day to day lives and business of our beloved capitalistic society?
Though bitching about stuff is easy, coming up with solutions is not. So to try and offer at least a jumping point my thought would be this; If the oil companies are so big on justifying their prices by “supply and demand”, work with them to fix the price per barrel to a realistic supply/demand ratio and let the gas prices slide up and down as they will. While the idea is totally raw, it would accomplish a handful of things…
- 1. Immediately drop the prices on a suffering economy
- 2. Keep the oil companies healthy, profitable and strong
- 3. Allow Americans to directly affect their cost of living
This would also still leave room to develop other sources of fuel and hopefully actually leave companies time to develop efficient fuel alternatives rather than using up half the worlds corn and continue driving up the price of food while making an inefficient fuel.
Bottom line, my thought on doing business in American Capitalism is to be able to have the freedom to make a good living and to also better the country and market (no mater how large or small of an effect you have) by how you run your company. Though that does add a whole “ethics” quality to the meaning of capitalism so maybe some people won’t like that.
Of course this idea opens up a whole other set of questions which I could address if this conversation gets any traction.
May 27th, 2008 | Life
That 11 billion miles less was just from the month of March, which obviously translates to hundreds of billions of miles a year less if the trend continues.
That aside, I agree that advancements in technology and a glorified celebrity lifestyle has drastically increased people’s standard of living. Also, I do agree that the economy isn’t as bad as the media makes it out to be, but if you lined up the increase in people’s standard of living in the last 9 years with the increase in gas prices it won’t even compare.
The price of gas has more than quadrupled in the last 9 years ($.89/gallon the spring of ‘99 at the SA across from the Slater Estates). I won’t even begin with pointing at Bush for that because it’s not like we would have been better off had Gore or Kerry been in there, we’d just be paying the same for gas with higher taxes.
At the point where gas prices doubled or even was close to tripling you could write it off as a wave, just like the real estate boom that we’ve just been coming out of the past couple years, but with the supposed supply and demand based pricing so out of whack it’s about time we recognize it as an issue that is beyond out of control. I can make up for the extra $30 in gas a month by eating more ramen and totino’s pizzas but it’s not that easy for businesses or families.
Without any affordable and efficient alternative out there for people to buy into (save everyone getting a motorcycle or scooter) people and businesses are forced to rely on gas as a necessary thing to live life and do business.
Speaking of affordable alternatives, I hear that Honda is coming out with an affordable hybrid in 2009. So maybe 5 years from now when the general public can actually afford them we’ll see a decent alternative option actually be adopted by more than smug San Franciscoins (no offense to people from san fran, just a reference to a South Park episode on Hybrids).
Also, I’ll give you the benefit of the doubt that the “cut tivo and $5 cups of coffee” was pointed towards the common American and was not trying to make a dig at what you may assume to be my personal spending habits.
BTW, what’d you think of Indy 4?
Comment by The Colonel — May 28, 2008 @ 9:50 pm