Price support laws for Gasoline ?

I might have to buy some water stocks.
Wasn't it a French man who said in the Disco 80's
"Americans are soo stupid they'd pay for water":clink:
 
Topspin said:
I might have to buy some water stocks.
Wasn't it a French man who said in the Disco 80's
"Americans are soo stupid they'd pay for water":clink:
Click to expand...


LOL...but alas the only water real Cowboys pay for is found in the "Food Of The Gods"...like in beer! Then again we only pay for the processing!:clink:
 
Battleborne said:
OMG...I am decaying...never mind I prefer my beer in cans...bottles foam way too much...;)
Click to expand...
Yeah, but cans taste like can. You can't get away from that. I've never been fond of can.

And don't even go near that stuff in the lined cans. Have you noticed that they always do that with the crappiest beer? It's like they have to do something to make it seem worth buying.
 
What they don't tell you is that all cans are lined with that stuff, there is nothing special about their cans.
 
leaningright said:
Heard this on the radio this morning, both the local DJ and Paul Harvey. I can't see why such a law would have ever been passed. If I wanted to sell gas for a penny profit I should be able to.
Click to expand...

It was passed to prevent companies from giving out special sales discounts to favored customers. I don't agree with laws with that have such effect, but they are very popular amongst populists. This is just one of the more obviously negative side effects.
 
Last edited:
leaningright said:
Heard this on the radio this morning, both the local DJ and Paul Harvey. I can't see why such a law would have ever been passed. If I wanted to sell gas for a penny profit I should be able to.
Click to expand...

It was passed to prevent companies from giving out special sales discounts to favored customers. I don't agree with most laws with that have such effect, but they are very popular amongst populists. This is just one of the more obviously negative side effects.
 
Cypress said:
Weird.

I can only speculate that this somehow pertains to anti-monopoly and anti-trust laws. It would be quite easy for an ExxonMobil or a Chevron to open a station across the street from a Mom and Pop gas station, and then drop their prices below profitability for as long as they needed to, to drive Mom and Pop out of business. They could totally outlast Mom and Pop, by selling at prices that were unprofitable.
Click to expand...

True. Whenever all comparative advantage's of having a regional base dissapear in an industry, the industry usually becomes far more national. Oil's never been really localized, but I can see where you're headed. Some industries it makes sense to have it mostly national, but we need to provide some support for some local, regional industries.

I'm going to get attacked by the right for this post...
 
Watermark said:
It was passed to prevent companies from giving out special sales discounts to favored customers. I don't agree with laws with that have such effect, but they are very popular amongst populists. This is just one of the more obviously negative side effects.
Click to expand...
Not necessarily. It was more likely because large corps would put medium-sized corps out of business by selling below cost for a long period, and also to keep from greedy bastages upping prices in crisis periods.
 
They are responding to supply and demand. Price gouging laws that prevent ANY profit-making off of a demand spike usually just result in shortages. If sellers were just allowed to raise prices like 20%-50%, we could get a hell of a lot more supply into needy areas.
 
Watermark said:
They are responding to supply and demand. Price gouging laws that prevent ANY profit-making off of a demand spike usually just result in shortages. If sellers were just allowed to raise prices like 20%-50%, we could get a hell of a lot more supply into needy areas.
Click to expand...
What needy areas? Seriously, 9/11 caused no shortage yet prices were raised incredibly in some places. This actually caused a rush to the pump and caused temporary shortages in those areas. It wasn't supply and demand, it was reaction to the sudden increase in prices and fear that they would continue.
 
People were using more gas, Damo. They wanted more gas.

Friedman once said "Gougers should be given a medal", and although I can't agree with him completely, I can understand that.
 
Watermark said:
People were using more gas, Damo. They wanted more gas.

Friedman once said "Gougers should be given a medal", and although I can't agree with him completely, I can understand that.
Click to expand...
Not entirely. This doesn't factor in human reaction to the rise in prices. Believing gasoline to be at a premium and fear of it going even higher will cause a rush at the pump.

In some areas enough information got out that the gougers simply didn't get business, in others they didn't. There was no rhyme or reason for the reaction.
 
You must log in or register to reply here.
Back
Top