ECONOMICS 101

Sgt Fluffy said...

Do you know why the profit? Because according to the Law of supply and demand, we the consumers set the price on everything we buy. There is a high demand for oil from the US,India and China right now, but the supply is strained due to a bunch of factors. Just because "big oil" makes money doesn't make them evil. What about all the governmental and environmental controls on drilling and refineries in the US. They are the reason we are in trouble. No refineries built in over 30 years, no drilling anywhere because some rodent might be harmed, it's insane, why must you think every time some one makes money off of something they are inherently evil? Just because they run a business for profit, does that mean they shouldn't make money? Or have their profits capped? That's delving into communism.

Fluffy, Fluffy, Fluffy, wake up and smell the coffee. We are talking about real life, not high school economics. In school Economics made sense, if everything was run that way it would be great. But this is life. We consumers don't set the price for ANYTHING. The Egg board sets the price of eggs, the milk board sets the price of milk, the beef counsel sets the price of beef. Oil prices from the Arab world is set by OPEC. The gas prices in the US is set by the FTC. Why do you think everyone get up in arms when someone drops the price at the pump a lot lower than their competitors? The Government has all the subsidies that makes sure that no one undercuts someone else. The only example you can find today of a free open market where the comsumer truely controls the price is the farmers market or curb market, where you can haggle the price of produce.