About Those "Skyrocketing" Gas Prices

Creators Syndicate ^ | Thursday, May 31, 2007 | Larry Elder

[IrishMike]

What to do about — choose the adjective — "spiraling," "skyrocketing," "out-of-control" gas prices? .................... A national morning show interviewer practically high-fived the governor of Florida for urging an investigation into "gouging." Meanwhile, over at one of the cable news networks, the "newsman" beat his desk, his chest and anything he could find to express his concern, outrage and downright indignation.

The California speaker of the State Assembly said that while he lacked evidence that oil companies engage in cheating, he still felt they did. Why? His gut told him so. In fact, over the last 20 years, 30 federal investigations seeking evidence of price manipulation or collusion came up with, uh, well, a dry hole.

But the conspiracy theorists press on. Sen. Chuck Schumer, D-N.Y., asked the Government Accountability Office to conduct an investigation. A year ago, he asked the Federal Trade Commission to investigate. By then, the FTC had already conducted two investigations, uncovering no evidence of unfair business practices. But, who knows? Maybe the oil company CEOs pulled a Sandy Berger, and stuffed damning evidence in their pants. So, by all means, let's look harder.

The mainscream media reports on the "outrageous," "unacceptable," "unjustifiable" "record profits." Never mind that following price peaks in 1981, low crude and gas prices during the '80s and '90s bankrupted some oil companies. But that was then. Today, Exxon Mobil, Chevron and ConocoPhillips earn tens of billions of dollars annually in profits that "defy common sense."

Why bother reporting that, with Big Oil profits at eight to 10 cents on the dollar, other companies and industry sectors earn more — including, for example, Internet giant Google and the banking industry. In California, the state "earns" about 40 cents per gallon, with the feds' cut coming in at almost 19 cents.

[TheRightGuy]

One day a few weeks back, milk jumped 50 cents a gallon.

Just what we needed ... an udder problem.

[IrishMike]

I mentioned the milk in passing, just to gage what would be the outcry if gasoline went up 50 cent over night.

[Osage Orange]

Unleaded $3.02.....Diesel $2.48 here....

[IrishMike]

One day a few weeks back, milk jumped 50 cents a gallon.
Just what we needed ... an udder problem.

I get (t)it

[Osage Orange]

Oil industry apologists have their hands full justifying the gouging these days.

Tell me the profit margin of XOM, COP, BP, etc...etc.

Then after you look that up...tell me the profit margin of MSFT, GOOG, PLL..etc.

[Osage Orange]

Good reply..........

[Red in Blue PA]

Read the post again.....I was referring to gouging (extreme profiting). If only a few companies made aspirin and they took the price to $2 a pill, I can only hope you would have a problem with that.

Gas and oil is necessary.....Google is not. And gas and oil is run by an OLIGOPOLY, not a true free market where anyone can come and sell their wares, contrary to what you will hear from the apologists on these threads.

[sauropod]

Actually, it is a balance between economics, housing availability, housing affordability and desire.

Desire is a distant fourth right now.

BTW, Quite a few of the Amish (like the guy that just made my kitchen cabinets) use gas. His son is not Amish, but drives his dad around.

Also, they use diesel. They have a diesel powered copier (no joke, I’ve seen it).

[Clam Digger]

How so, when prefaced as a lifestyle option. Nobdy 100 years ago really needed it. We’ve just changed our lifestyle because it was so cheap and easy to get all these years.

[Freedom4US]

Are they posted prominently at the pump? Betcha they are not. Why do you suppose that is?

[sauropod]

Who’s asking for a “gas fairy?”

I merely stated what my economic realities are.

[sauropod]

I feel your pain LOL!

Amazing how many people on this thread are criticizing your and my choices/circumstances w/o offering any solutions, or in one case, suggesting that I want a “gas fairy”

ROFL!

[sauropod]

You forgot part of the equation.

Government’s rapacious desire for tax revenue is also a “demand” that raises the price of gas.

As does eco-fascist DemocRat regulations.

[mysterio]

Because the cheap gas led to most work centralizing in the largest urban areas. Many of us don't live in those urban areas and have to drive to them to work. We couldn't all move there, since there's not enough room, and many of us couldn't afford to live across the street from our jobs anyway. And it would take decades of high gas prices to move the jobs back to the small towns. So we have to buy gas to get to work.

I'm not sure why this is a difficult concept to understand.

[sauropod]

b/c some people are economically ignorant.

Most of the American populace is.

[Red in Blue PA]

Re: Very few people truly NEED to buy gas. Most of us have made our lifestyles such that we THINK we NEED to buy gas. You have got to be joking!

[ChurtleDawg]

well, that $.59 actually goes to providing and maintaining all of the roads and bridges in that state, which is very costly in such a seismically active state

if you don’t have gasoline taxes, you don’t have roads, and then the need for gasoline dries up

[itsamelman]

Why don’t you invest in oil companies and get a cut of those “obscene profits” that result from all that “gouging”?

[PEACE ENFORCER]

Very True.......But then you would have to call it “Tax Gouging” we can’t have that now can we?????? /sarc off/

[thackney]

I understand it is unlawful to break down the various costs and taxes associated with gasoline, at least at the pump, in at least some states. Think about that.

Some states require it.

http://www.azleg.state.az.us/legtext/42leg/1r/bills/sb1171s.htm

I know I have seen it on some pumps. Not in Alaska where I currently live however.