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To: hoosierham
The problem often ignored is who sets what percentage as proper profit.

Amen. In cases like this, when a national security issue such as energy is involved, I think the executive branch of government has a responsibility to protect The People from predatory extortion. That gasoline that they're selling now has NOT been affected by any supply and demand issues. They're using a storm as an excuse to extort money from The People for personal economic gain. Shame on them.

153 posted on 09/12/2008 7:00:03 PM PDT by thatdewd
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To: thatdewd

How is a hurricane a “national security issue”? We aren’t being invaded by an army in Kentucky.


172 posted on 09/12/2008 8:28:18 PM PDT by ConservativeMind (What's "Price Gouging"? Should government force us to sell to the 15th highest bidder on eBay?)
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To: thatdewd
They're using a storm as an excuse to extort money from The People for personal economic gain. Shame on them.

You are mistaken. Predatory pricing laws will lead to gas shortages. Price caps must be accompanied by rationing. The problem with rationing is that there is no system to enforce rationing. Predatory pricing laws will lead to panic buying and black markets. These price spikes are signal of a severe shortage. Government cannot increase production, the only cure for a severe shortage.

Your assertion that the gas currently in inventory should be priced consummate with its cost is not correct. Market conditions determine the price. The situation with gasoline is not different than any other good or service in short supply. You could make the same assertion about the housing market. Suddenly houses become more expensive because demand increases. You are not going to sell your home for a lower price because you bought it when the price was low.

177 posted on 09/12/2008 8:42:21 PM PDT by businessprofessor
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