This would have very very very negative consequences. Think supply shortage.
In Defense of Price Gouging is a decent article that covers why limiting prices has some pretty severe unintended consequences.
And think of this... If they can sell gasoline to another country that doesn't have a price ceiling, why sell here it all? Soon you have a black market in fuel, and next thing you know Tina Turner is running Bartertown. ;)
Pretty much. Though, one does have to factor in regulations that may stifle competition. When was the last time one heard of a new upcoming oil company?
On another note, rising gas prices can be a good thing for alternative fuel markets. Once gasoline goes above the cost of other forms of energy, money starts to flow into those technologies... which in turn now have more money for research and development, and coupled with the increased production, drive down the costs of that new energy technology.
not to be a buzz kill, butcptchuckJune 4 2007, 20:27:55 UTC
Dear Mandy,
Sorry about the crud nature of this comment--not linking "magically." I am exhausted from being in the hospital these last couple days abd it has really left me worn out. Nevertheless, there is another side of this. Not to be too anal, but i wouldn't be suprised if some of us in Mandy Land have some of our retirement assets involved with the "big oil" companies (e.g. in mutual funds. etc.).
May I respectfully sugest you call up the bellow address.
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In Defense of Price Gouging is a decent article that covers why limiting prices has some pretty severe unintended consequences.
And think of this... If they can sell gasoline to another country that doesn't have a price ceiling, why sell here it all? Soon you have a black market in fuel, and next thing you know Tina Turner is running Bartertown. ;)
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If the market supports it and Americans are willing to pay it, then it's a fair price, no?
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On another note, rising gas prices can be a good thing for alternative fuel markets. Once gasoline goes above the cost of other forms of energy, money starts to flow into those technologies... which in turn now have more money for research and development, and coupled with the increased production, drive down the costs of that new energy technology.
Reply
Sorry about the crud nature of this comment--not linking "magically." I am exhausted from being in the hospital these last couple days abd it has really left me worn out. Nevertheless, there is another side of this. Not to be too anal, but i wouldn't be suprised if some of us in Mandy Land have some of our retirement assets involved with the "big oil" companies (e.g. in mutual funds. etc.).
May I respectfully sugest you call up the bellow address.
http://ezinearticles.com/?Why-Are-Gas-Prices-So-High,-And-What-Can-You-Do-About-It?&id=459508
I'm going to bed.
Nuthin' but love,
-- just me
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(The comment has been removed)
From where, then, do the oil companies make their profits? Or is it by sheer volume of sales?
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(The comment has been removed)
Very sincerely,
-just me
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