Over 30 years now, that I know of, people have been complaining about the price of gas, no matter what it is. I'm getting mighty tired of all the news about high gas prices. Back around 1974, the price of gas inched its way up to 34 cents per gallon. People were so outraged over this high price that they decided to get out of their cars and pumped their own gas in order to save two cents per gallon. It may seem foolish when we think back on that situation in today's context, but it was a real problem back then. We were mad, and we weren't going to take it anymore. Yet the price increased again.
I would agree that today's situation seems even more dire. Even adjusted for inflation, today's situation is worse. Should we be looking to the government for a solution? I'm not really sure if this is a governmental problem. It is a free market problem. And how is it explained today? Many armchair economists attempt to explain us in the knowledge that they gained in Econ 101. Yes, supply and demand seems to be the solution that people will dole out to you. It may be only part of the answer that people try to explain it fully using this one lesson. It's not entirely their fault, because Econ 101 is one of those classes that is taught at eight o'clock in the morning no matter what college or university you may have attended. And how much could you really learn looking out of one bloodshot eye?
Yes, the world economy is putting more demand on mid-Eastern oil. However, if China, India and the other newly industrialized nations are competing for the same barrel of oil, the oil companies in the United States would be paying the price, yet their profits would be low because of the price they are paying the foreign countries for oil. The margin would be razor thin. So my question is to the armchair economists, why are the American companies having such large profits? Econ 101 would dictate that the lowest price for a fair profit be charged. I guess either no one made it to Econ 102 or that class was also scheduled at eight.
I can think of no other commodity in the economy today, that will affect just about everything else than the price of gas. It affects the delivery of groceries, yet we all have to eat. We're going to be getting contradictory statements from the state this summer because the tourism industry wants us to drive around. Yet families do not want to spend the extra money, and everything else in the economy is affected by the price of gas also. In a move that I have no idea how to make sense of, citizens across the south eastern part of the state are expected to drive to State Fair Park and watch Indy Car driving. Wouldn't the environmentalists view this as a great waste of fuel? I assume the cars are not being powered by the wind or the sun. I guess it would be OK if we did not drive there in an SUV, but took a hybrid car. That way the rest of us citizens would be able to save on gas, reduce emissions and slow global warming. If we slowed global warming also known as climate change caused by a man, the temperature would go back to being normal, and we would finally have summer-like weather, right?