|
Tractor Talk Discussion Board |
Re: Re: High cost of fuel...Reason?
[ Expand ] [ View Follow Ups ] [ Post Followup ] [ Return to Forum ]
Posted by Paul in Mich on June 07, 2004 at 15:02:10 from (68.188.227.110):
In Reply to: Re: High cost of fuel...Reason? posted by Brian in Kansas on June 07, 2004 at 11:18:52:
Brian, you are right about one thing. The government deregulated the oil industry, AND the industry closed refineries, not that the refineries closed BECAUSE the government deregulated the industry. This was not a cause and effect here, only a sequence of events. Deregulation in any industry creats more competition, therefore the price of the product is established through supply and demand. No program that has been regulated by government has ever brought us lower prices. That is a total myth. Regulation decreases competition, which historically has led to less market based prices, and ultimately higher prices. Government can only affect the "cost" of a product or service, while free enterprise is the only entity which can establish a fair and competitive "price". Free enterprise allows competition which allows for lower prices. Government control only establishes a "cost" and is not a "price", because it is not negotiable between seller andy buyer. Government is not held accountable for the cost of a product of service. It is ridiculous to think that the oil companies are making more money because they dismantled the refineries, thereby not being able to meet public demand for their product. Business just doesnt work that way. If you want to sell more pizzas, do you decrease your oven capacity so that you cannot meet the demand of the pizza buyer, thereby allowing you to increase the price of the pizza? The answer is NO, because the "cost" of making the pizza does not decrease just because you shut one of the ovens down, and if you cant meet demand, you cant just automatically increase the "price" of your pizza to make a profit, because the competition has his all his ovens operating and is able to meet the demand of "YOUR" customer, and at a competitive "price". The Oil industry is no different. They are all competing for your dollar, just like the pizza shop. If they could, they would increase the capacity to sell you more oil and oil products. Regulation, and the dismantling of the refineries because of the environmentalists pressure limits the oil companies to create that competition and it leaves you and I out of the "price" loop. Just another lesson in ecomomics 101.
Follow Ups:
Home
| Forums
Today's Featured Article -
Third Brush Generators - by Chris Pratt. While I love straightening sheet metal, cleaning, and painting old tractors, I use every excuse to avoid working on the on the electrics. I find the whole process sheer mystery. I have picked up and attempted to read every auto and farm electrics book with no improvement in the situation. They all seem to start with a chapter entitled "Theory of Electricity". After a few paragraphs I usually close the book and go back to banging out dents. A good friend and I were recently discussing our tractor electrical systems when he stated "I figure it all comes back to applying Ohms Law". At this point
... [Read Article]
Latest Ad:
John Deere B 1943
[More Ads]
Copyright © 1997-2024 Yesterday's Tractor Co.
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V. Yesterday's Tractors - Antique Tractor HeadquartersWebsite Accessibility Policy |
|
