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2005-09-05 Home Front: Economy

Three Cheers for "Price Gougers" (Long but good)

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Posted by phil_b 2005-09-05 00:12|| E-Mail|| Front Page|| [11132 views since 2007-05-07] Top

#1 So on the other side of the equation that makes 'looters' simply thrifty consumers. They simply adjust their payments to match their means to compensate by available resources.

/sarcasm off

Posted by Omitle Sluse2961 2005-09-05 10:37|| 2005-09-05 10:37|| Front Page Top

#2 Adjusting payments to match the ability to pay sounds more like socialism/communism which has absolutely nothing to do with free markets.

Posted by AzCat 2005-09-05 11:54|| 2005-09-05 11:54|| Front Page Top

#3 I read this a couple of days ago and referred it to to some of my coworkers who were quite convinced (and in fairness, had some faint reason to be)that when gas prices here exploded here in the SE last week, they were being gouged. It wasnt at all easy explaining to them that prices would start going back down as the pipelines came back on line. Lo and behold, last night the Plantation Line is now back to 85% capacity and another (can't find the name) is heading in that direction as well, and prices are starting to noticeably slip here. They peaked at about 3.25/gal for regular (BP is still selling it at that level but nobody's buying)but are now down to between $2.98 and $3.10. The Invisible Hand strikes again.

Mike

Posted by Mike Kozlowski 2005-09-05 12:06|| 2005-09-05 12:06|| Front Page Top

#4 In case anyone cares, here's some additional info:

Walter E. Williams, What To Do About Gasoline Prices

Thomas Sowell, What "Oil Crisis"?, and What "Oil Crisis"? Part 2

Posted by Chris W.">Chris W. 2005-09-05 12:22|| 2005-09-05 12:22|| Front Page Top

#5 Same thing happened here in Vidalia, MK: the pipeline break caused gas prices to skyrocket above $3.25. My kids were scandalized, but I told them that the prices made people think twice or thrice about buying gas to drive on anything other than very important business.

Sure enough, prices are beginning to come down below $2.90 just this morning. The way to encourage it is to buy gasoline at the lowest price possible and "encourage" others to lower their prices by not buying any from them.

Posted by Ptah">Ptah 2005-09-05 15:32|| http://www.crusaderwarcollege.org]">[http://www.crusaderwarcollege.org] 2005-09-05 15:32|| Front Page Top

#6 Thanks Chris W. for the Walter Williams and Thomas Sowell articles--it puts gas prices in perspective.

Posted by John Q. Citizen 2005-09-05 17:08|| 2005-09-05 17:08|| Front Page Top

#7 Ptah-
Funny you should put it that way. The cheapest station in town is Fat Boys - a Harley dealership that happens to have a gas station and grill attached. Their motto is "Lowest In Town, No Matter What" - and that is what they've stuck to, although for a few days there was only a couple of cents difference instead of the usual 15-25 cent difference they usually had. But as of this morning, God bless 'em, they went down to 2.95, and my son advises they are changing the signs now to 2.90. The usual steady line is back in place, and word is that the other stations along Guigniard (one of the three main drags here in Sumter) are swallowing their pride and starting to pull the prices down.
As goes Fat Boys, so goes Sumter.*S*

Mike

Posted by Mike Kozlowski 2005-09-05 18:49|| 2005-09-05 18:49|| Front Page Top

#8 Smile when you say Sumter.

Posted by Shipman 2005-09-05 20:08|| 2005-09-05 20:08|| Front Page Top

#9 Sure enough, prices are beginning to come down below $2.90 just this morning.

Consider yourselves fortunate. That sort of thing never happens around here in CA; prices rocket up, then float down like dandelion seed.

Posted by Bomb-a-rama 2005-09-05 20:45|| 2005-09-05 20:45|| Front Page Top

#10 It started here Sunday. Took the kids on an all day trip. When we left, two stations across from eachother had gas at 3.19 and 3,29. Wehn we came home they were both at 3.19.

Posted by Mrs. Davis 2005-09-05 21:08|| 2005-09-05 21:08|| Front Page Top

#11 Thanks for the posting and the econ lesson.

My biggest concern, if the prices do come back down, is that people might just stick their heads back in the sand, as we did after the Arab Oil Embargo 30 years ago, and assume gas supplies will be hunky dory again.

I remember in the 70s, how my stepfather's big beaked dinosaur of a Chrysler gas guzzler went out of style because of the oil embargo. Everybody had wonderful ideas for conserving energy, but as soon as the gas supply picked up all these ideas dropped off the radar screen.

I am glad to see our local developers building "traditional neighborhoods" with retail space and other community amenities. For the first time in decades, I have seen a developer make room for a church in a new development. I'm looking forward to the day when I can send a kid on a bike to the grocery store again. It's nice to finally see sidewalks on at least one side of the street.
Let's design more common sense into our building.

I'm sure some of you know more about alternate energy sources than I do; looking forward to future postings and commentary.

Posted by mom 2005-09-05 22:47|| 2005-09-05 22:47|| Front Page Top

#12 In other news, it was just announced that "price gouging" is a myth. There is only the free market, there is no such thing as price gouging.

Posted by asedwich">asedwich 2005-09-05 23:08|| 2005-09-05 23:08|| Front Page Top

#13 Here's the kicker (from the article): We can recognize that when prices are high, some people of modest means may not get essential goods.

Therein lies the problem.

Posted by Rafael 2005-09-05 23:24|| 2005-09-05 23:24|| Front Page Top

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