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To: paulcox1978; Thanatos
paulcox1978 Since Aug 18, 2005

If he knew anything about economics....(to pay for roads, bridges, hurricaine relief, etc.) will now go to the gas companies who are already making staggering record profits.

Thanks for wandering over from DU and spewing complete NONSENSE. Basic econ lesson for you since you are so totally ignorant of ANY understanding of SIMPLE economic laws. ANY time you REDUCE the cost of your goods, you INCREASE the sales as long as you have approximately the SAME quality good and a constant or raising demand curve. IF the Gas Companies can sell gas with OUT having to serve as the tax collector, they can SELL at a lower price then their competitors and MAKE MORE PROFIT. If I sell 100 gallons of gas at $3.50 and then sell sell 150 gallons at $2.50 where do I make the most profit? When the lower price causes a slack in demand for the competitors they have to reduce price to stay competitive. Do the math and go back to your hole. The reason the gas companies are posting "RECORD PROFITS" is they are selling ALL THEY CAN. It's called Supply and Demand. The prices are a result of TOO MUCH DEMAND and TOO LITTLE SUPPLY. Go look it up in your Internet search engine before you have the arrogance to come back here an lecture ANYONE on Economics.

156 posted on 09/02/2005 3:23:55 PM PDT by MNJohnnie
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To: MNJohnnie
The prices are a result of TOO MUCH DEMAND and TOO LITTLE SUPPLY.

This is the only thing that made sense in your post.

Under normal curcumstances, the price of any good is set where supply meets demand. What you fail to understand is that lowering the price artificially (ie. cutting taxes), has an affect on demand -- it increases it. Since the supply is limited (and largely fixed), the increased demand will in a short period of time move the price back up to what it was.

You are clueless.
170 posted on 09/02/2005 4:17:30 PM PDT by paulcox1978
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