Comments on: Put Into Perspective http://www.philosophy-101.com/2008/05/21/put-into-perspective/ Tackling life using the principles of Reason, Freedom, Individualism. Mon, 11 Jan 2010 01:31:01 -0600 http://wordpress.org/?v=2.9.1 hourly 1 By: Bob http://www.philosophy-101.com/2008/05/21/put-into-perspective/comment-page-1/#comment-1765 Bob Tue, 03 Jun 2008 16:20:03 +0000 http://www.philosophy-101.com/2008/05/21/put-into-perspective/#comment-1765 A couple comments. I don't see how the increase in cost of production per gallon of gasoline is obvious. Clearly we're spending more on the production, but the marginal cost has dropped enormously. I think the US's refusal to tap into their reserves is more complex than environmental pressure and the implied sinister nature of OPEC. We can't rely upon oil to fuel our energy needs indefinitely for two reasons. First, it's a finite resource and demand from developing countries (China and India specifically) will continues to rise. And second, being dependent on oil in turn makes us dependent upon the middle east. Weaning ourself off is an excellent national security policy. The only way to wean the american public off oil is through high prices, and for that reason I think the current trend is good. Europe has higher gas prices because of higher taxes, but is also much less dependent on tumultuous parts of the world for it's energy. Monica is grossly mistaken in thinking that the recent rise in gas prices is not due to market forces, and that presidential influence is somehow a mechanism of free trade. Gas prices have increased for very clear reasons: China and India are new huge economies with an equally large demand for energy, our wars in the middle east have destabilized a large portion of the supply, and most importantly, we're willing to pay these prices. Ultimately the price elasticity of demand is too inelastic and now the producers know it. A couple comments.

I don’t see how the increase in cost of production per gallon of gasoline is obvious. Clearly we’re spending more on the production, but the marginal cost has dropped enormously.

I think the US’s refusal to tap into their reserves is more complex than environmental pressure and the implied sinister nature of OPEC.
We can’t rely upon oil to fuel our energy needs indefinitely for two reasons. First, it’s a finite resource and demand from developing countries (China and India specifically) will continues to rise. And second, being dependent on oil in turn makes us dependent upon the middle east. Weaning ourself off is an excellent national security policy.

The only way to wean the american public off oil is through high prices, and for that reason I think the current trend is good. Europe has higher gas prices because of higher taxes, but is also much less dependent on tumultuous parts of the world for it’s energy.

Monica is grossly mistaken in thinking that the recent rise in gas prices is not due to market forces, and that presidential influence is somehow a mechanism of free trade. Gas prices have increased for very clear reasons: China and India are new huge economies with an equally large demand for energy, our wars in the middle east have destabilized a large portion of the supply, and most importantly, we’re willing to pay these prices. Ultimately the price elasticity of demand is too inelastic and now the producers know it.

]]> By: Monica http://www.philosophy-101.com/2008/05/21/put-into-perspective/comment-page-1/#comment-1702 Monica Thu, 22 May 2008 13:03:07 +0000 http://www.philosophy-101.com/2008/05/21/put-into-perspective/#comment-1702 "Gasoline is only slightly more expensive than in 1922, despite obvious increases in demand and cost of production. And, considering the overall cost of car ownership, the percentage that fuel costs make up has actually decreased since the 1970s. Further, compared to what other countries’ citizens pay at the pump, Americans get of easy. In European countries, prices per gallon are often as much as double." Hey, I love the way your blog has changed in looks! OK, I have to respectfully disagree with this reasoning. First, gas should not have slightly increased or decreased since the 20s or the 70s -- it should have gone WAY DOWN if market forces were at work. Further, most people don't care to compare to 90 years ago. They are comparing to five to ten years ago when gas was HALF to ONE FIFTH!!! the price it is now. In 1999 I was paying $.82 per gallon. Today I am paying $3.75 per gallon for the same octane. Also, I don't care about how much Europe pays. They pay more because there is more government intervention to artifically make gas more expensive there. I know that you don't mean it that way, but I hear that argument constantly from leftists: that Americans can just deal with gas prices. Yes, we probably can. The real argument is, "Just how much life is it OK to take?" This is making a huge dent in peoples' pocketbooks over here. For the first time ever, they are buying smaller cars. Look, I don't care whether gas goes up or down, really, so long as the market determines the price. That is not the case here and the results matter enormously to me. Gas has not gone up recently due to market forces. It has gone up because we have a weak president who is unwilling to act in the American interest and stand up against barbarians who act like mobsters running an extortion racket. Number one, repeal the gas tax. Number two, these oilfields should go back to their original owners. There is no excuse. “Gasoline is only slightly more expensive than in 1922, despite obvious increases in demand and cost of production. And, considering the overall cost of car ownership, the percentage that fuel costs make up has actually decreased since the 1970s. Further, compared to what other countries’ citizens pay at the pump, Americans get of easy. In European countries, prices per gallon are often as much as double.”

Hey, I love the way your blog has changed in looks!

OK, I have to respectfully disagree with this reasoning. First, gas should not have slightly increased or decreased since the 20s or the 70s — it should have gone WAY DOWN if market forces were at work. Further, most people don’t care to compare to 90 years ago. They are comparing to five to ten years ago when gas was HALF to ONE FIFTH!!! the price it is now. In 1999 I was paying $.82 per gallon. Today I am paying $3.75 per gallon for the same octane. Also, I don’t care about how much Europe pays. They pay more because there is more government intervention to artifically make gas more expensive there. I know that you don’t mean it that way, but I hear that argument constantly from leftists: that Americans can just deal with gas prices. Yes, we probably can. The real argument is, “Just how much life is it OK to take?” This is making a huge dent in peoples’ pocketbooks over here. For the first time ever, they are buying smaller cars.

Look, I don’t care whether gas goes up or down, really, so long as the market determines the price. That is not the case here and the results matter enormously to me. Gas has not gone up recently due to market forces. It has gone up because we have a weak president who is unwilling to act in the American interest and stand up against barbarians who act like mobsters running an extortion racket. Number one, repeal the gas tax. Number two, these oilfields should go back to their original owners. There is no excuse.

]]>