Sunday, September 25, 2005

Guest post!

Gasoline Prices. Folks, we live in a capitalistic system, which has served us pretty well these last couple hundred years. Our system depends on the so-called "animal spirits," which drive us all in the aquisition of wealth and profit. We seem to be going through a period where acquisitiveness is getting a bad name - sort of. We object to seeing gasoline price signs change so rapidly and so unpredictably. Before we start another investigation that inevitably leads nowhere, stop and think about a couple things. Gasoline prices have increased less in the last 50 years than the consumer price index and minimum wage. You want a law that forbids a seller from making more than a legal percentage based on the cost of goods sold? Ok, how about throwing houses into that pot. If you buy a house for $200,000 then let's make it illegal to make more than 10% over your cost when you sell it. That way we have a stronger case to apply that to oil economics, which few critics understand. By the way, I am betting the average profit of those price-gouging, anti-social profiteers is less than five cents per gallon, maybe one ortwo percent, and they squeeze that out after we imposed about 50 cents per gallon on their product in state and federal taxes. Let's hear it for Adam Smith and the capitalistic system. And if you don't whine about me selling my house at market prices then I won't whine about yours. Thanks. Time to be wheeled out in the sun.


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