Monday, April 11, 2005
My poor understanding of macroeconomics. or Gas,Coke and Smoke ,America's precious commodities
It would seem that gasoline, Coca Cola, and cigarettes are the most important things in american life. I derive this statement from the fact that these are the three things that we tolerate daily swings in the price of ,with no obvious justification. I have been to the fuel pump two days in a row at the same place and paid 30 cents more the second day for a gallon of gasoline . I know, as so deftly explained by a much more business minded friend of mine , that this change is simple supply and demand and if one guy changes his price others will follow ,BlaBlaBla. This is exactly the issue. This sort of greed is exxactly the sort of behaviour that has american society in the state it is in . At risk of sounding communist, wouldn't it be better all around if suppliers only made enough profit for comfort ? admittedly this woyuld of course be up for interpretation ( one mans comfort etc). Greed and selfishness , greed and selfishness. Hereis my coompletely idealist point of view arguement : I know full well that would the tank truck at the gas station comes on a set day and that tank of gas cost a certain amount how is it that between trucks the rice can swing so greatly ? I know the answer is that the big company is just greedy and often times the little station owner is greedy as well. It doesn't have anything to do with who shot who in the middle east or how the vote in congress went as to drilling through the spotted owl's nest. It all really comes down to hey I want some more money. The big mystery is the same sort of thing goes on with Coke and cigarettes how is that are the coca nut barons and tobacco sheiks demanding more for their products too? Note: I don't smoke, I am just way too observant and probably looking for something else to rant about. Do you think you would tolerate this sort of price swing for other things you buy? I wonder how much gas would cost if the price was controlled by the actual cost to produce it? Maybe mexico has the right idea . The price may be high and government controlled but it is sure to be the same everywhere you go. Well I am going to go fill up and get a soda. I need to drive somewhere to buy something I don't really need at a store I could easily walk to.