Quote:
Originally Posted by Kodak
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A price is nothing more than a quantification of a product's value. And if the seller sets a ridiculous price, the consumer tries to leave. The seller wants it as high as consumers will tolerate, and consumers want it as low as possible. Really, a product's price is determined by what the market (the aggregate of the people) will tolerate.
Why artificially increase it?
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It's true that the economic principles of the free marketplace determine the price of goods.
However in the case of oil (and many other items), the price is artificially lowered. It's lowered by our government and our military spending billions, if not trillions every year, to keep the international scene "safe" for the energy trade. You can add to that the costs of any tax incentives/rebates/credits given to the oil companies.
If those costs were to be charged directly to the oil companies it would have a significant effect on prices and on all economies where oil figures prominently (that is, any economy other than a third world backwater).
In other words, oil in fact is very expensive, and if we had to pay the full cost at the pump we would refuse. Instead, we pay for it via our taxes, and we complain about the taxes instead. Those taxes are there to pay for all the stuff we keep asking our government for. So I say pay the taxes, or live in an unorganized society where it's all out everyone for themselves.
Here's another cost: How about a sign on the pump "My son or daughter died in a desert so you could fill your tank"? That concept is actually not so unrealistic; we just don't want to think about it.
It's just one more case of "conservatives" trying to work both ends of the same lever. They want everyone to be self supporting - including business and government. But if you really attempt to make that happen, things don't necessarily work out smoothly.
OK, end of rant.