Inflation at its highest in 40 years…

You're right, the fact that you posted that in response to my question should have answered the question.

 

I think what you and @Os Trigonum are dancing around is this...

The reason the question of gas prices being too high isn't just a yes or no question, but that you feel it's a trap question that will lead to somehow blaming the administration for those high prices.

But @Os Trigonum is just saying he was pointing out she was dodging the question, nothing more.

 

I sound positively lucid when you put it that way

 

Why is this guy asking the question of her in the 1st place, does he think she can snap her fingers and they can start drilling?

Or that more drilling would make prices drop, when O&G companies are already sitting on leases they don't use.

I am not dancing around anything, I just wanted him to actually answer a question in some kind of detail.

 

Given its an opposition senator asking the question - I think it's not a stretch (or a mind read) to say he's asking it to score political points. It's safe to say we all know that right?

 

So . . .. *IF* Inflation is a result of increased cost in the supply chain
*WHY* are they making record profits?

The biggest problem in capitalism is the need to constantly increase profits
Making 100 million in profit every year is not good . . .it is viewed as bad
You always have to increase . .100 this year. . 120 the next etc
It is not a sustainable thing imo . .. not infinitely.

Rocket River

 

yip, the global supply chain bottleneck, the outgrowth of the stupid trade war, has been the #1 reason for the higher cost of goods.

cos are still making profit, cos companies can pass along the higher input cost to consumers

 

Your 401k doest grow if companies passes off the profits to the consumer.

Amazing hiw everyone wants it both ways

 

They are not just passing off cost. . .they are throwing a surcharge on top of it.

So a consistent profit is not passed off? Only the increase??

Rocket River

 

Capitalism 101 is that if sellers inflate their prices that will invite competition who will sell the same product at lower prices. That presumes there is open access to the markets along with access to the resources to sell those products and services. With supply chain problems essentially we have a captive market where new competitors can't access the markets so those who can provide products can charge higher rates due to scarcity.

 

I get it.
This is esp dangerous in markets with a small group (Oligarchy) controlling it
While every business may not price gouge . .. .if essential businesses price gouge then
those cost translate and trickle down

So If Oil and Gas Price Gouge . .. .
Then Trucking, Shipping, Electricity, etc feel that hit

Rocket River

 

It's not collusion, but those oligopolies are so vertically integrated that they can telegraph demand and conditions overtly in the press. Something like a refinery blowing up is a foreseeable event but they deliberately don't allocate resources to inventory because it negatively impacts their bottom line even when reserves are successful at hedging risk. It's deliberately anti-fragile, and there's culpable deniability with it as the industry standard.

Long story short, while big, they're still only one part of the supply chain, and they'll still get their cut regardless of price hikes.

Price dips otoh, they loathe. Unless you get more independent companies influencing the supply like the previous fracking boom, they have no reason to undercut their golden goose.

Don't believe what politicians on either side are saying...

 

Rs stand for nothing ... except never ending grievances.

 

Banning 'Unconscionable Excessive' Gas Prices Is Risky Economic Nonsense
Democrats are trying to inject a political solution into an economic problem.

https://reason.com/2022/05/20/banning-unconscionable-excessive-gas-prices-is-economic-nonsense/

 

Typical. "We had to raise your price because of our added costs. Oh, look, we made record profits." Capitalism at it's finest. Corporations will end up putting us all in the poor house - or debtors prisons.


Sit down because this is going to blow your mind...
Maybe these companies don't have to make record profits...

Also it seems like for most Americans gas is a inelastic demand product. People need to go to work. People are still going to visit friends and family.

"U.S. Energy Information Administration - EIA - Independent Statistics and Analysis" https://www.eia.gov/todayinenergy/detail.php?id=19191#:~:text=Gasoline is a relatively inelastic,lower demand, and vice versa.


Socialize the losses and privatize the gains

 

meaningless rhetoric, afterall, has there ever been a house bill that is not injected with a political solution ?

This Reason article made this concluding remark, "the government ought not to be in the business of forcing businesses control prices"

yet, in 2017 when Trump was President, Reason.com and the GOP were silent when the Gov't convicted the "Pharma Bro", Martin Shkreli, for price-gouging.
https://www.abc.net.au/news/2017-09...rma-bro-prosecutors-want-bail-revoked/8885894​

OT,
why do Repugs want to protect those with the economic power to gouge gas prices only when the POTUS is a Dem?
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so we've got THIS going for us . . . which is nice

MONEYWATCH
"Cruel summer": Gas could hit $6.20 per gallon nationally by August, analyst predicts

https://www.cbsnews.com/news/gas-prices-could-reach-6-a-gallon-by-summer-jpmorgan/

 

I think it's important to separate gas stations from oil companies. An exxonmobil gas station isn't owned by exxonmobil for instance.

 

Most democrats want high gas prices to curb climate change by using the market to change behavior. High gas prices move people to public transport, smaller cars (not SUVs) and EVs.

Any thought that Democrats want to lower gas prices and Republicans want them higher isn't going to stand any public scrutiny.