Ridiculous Ways to Lower Gas Prices
There's a new facebook group called, "15,000,000 for lower gas prices".
I don't have anything against petitions (it's constitutional), but I think stupid petitions like this one should be illegal. Let me explain:
Ways to lower gas prices:
1. Invade Iran and Saudi Arabia and take their oil 2. Have the government cover a majority of the prices 3. Use the Federal Reserve system to artificially change the prices
Let me explain why this group is completely moronic. First, invading Iran and Saudi Arabia obviously won't work (unless we take all of our military strength). Second, how will the government cover most of the prices? Well, through taxes,which just means you'll still be paying for it. Tax money is the people's money. I know! Why don't we just tax the hard working CEOs, doctors, and hard working families that make twice as much as I do! They may have a whole corporation and God knows how many jobs on their shoulders, but they can spare a few thousand dollars! We the people deserve that money, anyway! Who cares about lawyers and surgeons, anyway?
Neither of those will work. The second will lower gas prices, but you'll be paying the taxes; you'll just be paying two bills, which doesn't make any sense. In fact, it'll actually raise the prices, simply because filing an entire country's taxes probably costs more than oil. Why pay for oil and the expenses it takes to tax?
The last one will definitely not work. To tell that market to shut its mouth is probably the most destructive thing to do. This means that when the market says prices should go up, they go down; when the market says the prices go down, they go up. It's all mathematical: lowering prices now will cause the companies that provide those services to operate under the breaking point (when the profits equal the expenses), and that'll just eat at their savings, and then they'll be forced to either; file bankruptcy or raise prices.
Price: $500 = Artificial price (lowered price): $400 = Profits down by 100x = Sells increase = Profits go down (more sales than predicted) = Supply goes down = Company's savings down = Prices go up = Sells go down = Demand goes down = Prices go up (not by much, since supply & demand helps is rather stabilized)
x = number of sales
Pretty much what's going on in this country right now. In fact, step #3 could be considered an expense: their profits are to 500x, but instead it 400x (500x ~ 100x). Let's not forget the stock market.
Last change: increase drilling. It is true that North America has lots of oil, and that the US government is stopping people from drilling (all to "help" the environment). Of course, I don't know anything about that, so if you have any info, please share.
I don't have anything against petitions (it's constitutional), but I think stupid petitions like this one should be illegal. Let me explain:
Ways to lower gas prices:
1. Invade Iran and Saudi Arabia and take their oil 2. Have the government cover a majority of the prices 3. Use the Federal Reserve system to artificially change the prices
Let me explain why this group is completely moronic. First, invading Iran and Saudi Arabia obviously won't work (unless we take all of our military strength). Second, how will the government cover most of the prices? Well, through taxes,which just means you'll still be paying for it. Tax money is the people's money. I know! Why don't we just tax the hard working CEOs, doctors, and hard working families that make twice as much as I do! They may have a whole corporation and God knows how many jobs on their shoulders, but they can spare a few thousand dollars! We the people deserve that money, anyway! Who cares about lawyers and surgeons, anyway?
Neither of those will work. The second will lower gas prices, but you'll be paying the taxes; you'll just be paying two bills, which doesn't make any sense. In fact, it'll actually raise the prices, simply because filing an entire country's taxes probably costs more than oil. Why pay for oil and the expenses it takes to tax?
The last one will definitely not work. To tell that market to shut its mouth is probably the most destructive thing to do. This means that when the market says prices should go up, they go down; when the market says the prices go down, they go up. It's all mathematical: lowering prices now will cause the companies that provide those services to operate under the breaking point (when the profits equal the expenses), and that'll just eat at their savings, and then they'll be forced to either; file bankruptcy or raise prices.
Price: $500 = Artificial price (lowered price): $400 = Profits down by 100x = Sells increase = Profits go down (more sales than predicted) = Supply goes down = Company's savings down = Prices go up = Sells go down = Demand goes down = Prices go up (not by much, since supply & demand helps is rather stabilized)
x = number of sales
Pretty much what's going on in this country right now. In fact, step #3 could be considered an expense: their profits are to 500x, but instead it 400x (500x ~ 100x). Let's not forget the stock market.
Last change: increase drilling. It is true that North America has lots of oil, and that the US government is stopping people from drilling (all to "help" the environment). Of course, I don't know anything about that, so if you have any info, please share.
About the Author:
Drieick is the writer of this article, and has read up on some of the worst ideas for reducing gas prices. For more information on some of the dumbest government ideas, check out his blog at Blog Pantsu.
posted by Credit Counseling at
1:20 AM
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