09-01-2005, 03:27 PM
I'm impressed with all the intelligent feedback on this subject. Everybody has some great points. The one point from Dave about the fact that gasoline prices will not affect the economy is not correct. I am an Economics major, and the fact is if companies have to pay more for gasoline to move their products, or to make their products, or to pay their sales people then their profits will fall. Because like I stated earlier their cost of doing business will go up. Now if they increase their prices this may help, but as has been stated would u decide to pay $5.00 on a gallon of gasoline so that you can get to work, or $3.50 on a 2 liter of Pepsi to enjoy some sugar water? And as the profits fall, more lay offs will happen which will put more people out of work, which will also kill the economy. As I learned in Econ. classes as the prices of natural resources increase there is the opposite effect on the economy, and the circle will continue. This the reason for the reserve so that this will not happen. The only companies benefiting from these prices are the gas companies, as you can see in their bottom line which is double digit profits this year. Even gas station owners do not make more profit, because they are only able to price the gasonline 2-3 cents over their cost, they make most of their money off of car washes, and items sold in their stores.
It is true we can continue to complain, but right now this will not do much. We will have to make changes in our own life style until something changes.
I guess that is my 2 cents.
It is true we can continue to complain, but right now this will not do much. We will have to make changes in our own life style until something changes.
I guess that is my 2 cents.