And you know exactly what about economics?
Check out this exchange between Tim Russert and Energy Secretary Bodman on Meet the Press.
As mentioned in a previous post, I don't know much about economics. I've never even taken a class in it. But at the very least I'm aware of the phenomenon that prices are largely determined by two forces known as supply and demand. I'll admit that the topic comes up in some of the math classes I've taught, but I chalk it up to common sense. If there's a larger supply of resource A, it is intrinsically less valuable (since there's a lot of it). If the supply is running low, it is therefore more valuable and will be worth more.
A great number of people need to get off their high horses and pay for gas. By the way, $3/gallon is not that bad. Around the world prices can be much much worse. If cheap gas is the most important thing to you, it's a quarter a gallon in Venezuela if you'd like to move there.
But I will note with gratitude, that due to these incredibly high prices which have forced Americans to cut their travel and fuel consumption nearly in half, the government is thinking about giving back $100 to many people (I'm not sure if they would be citizens or illegals) who have to pay so dearly for gas. And from what I hear, each check will come with a free tote bag.
As mentioned in a previous post, I don't know much about economics. I've never even taken a class in it. But at the very least I'm aware of the phenomenon that prices are largely determined by two forces known as supply and demand. I'll admit that the topic comes up in some of the math classes I've taught, but I chalk it up to common sense. If there's a larger supply of resource A, it is intrinsically less valuable (since there's a lot of it). If the supply is running low, it is therefore more valuable and will be worth more.
A great number of people need to get off their high horses and pay for gas. By the way, $3/gallon is not that bad. Around the world prices can be much much worse. If cheap gas is the most important thing to you, it's a quarter a gallon in Venezuela if you'd like to move there.
But I will note with gratitude, that due to these incredibly high prices which have forced Americans to cut their travel and fuel consumption nearly in half, the government is thinking about giving back $100 to many people (I'm not sure if they would be citizens or illegals) who have to pay so dearly for gas. And from what I hear, each check will come with a free tote bag.
And a gratuitous Seinfeld quote from The Pledge Drive:
Kramer: Jerry, where are all the tote bags?
Jerry: I don't know.
Kramer: Well, I'm not leaving the premises without tote bags. I was promised
tote bags and tote bags I shall have.
posted by the jake at 12:48 PM
1 Comments:
Jake, good post... I like to compare this whole oil thing to the price of corn (to put it in more local terms). Right now, farmers are marginally profitable with corn at about $2 per bushel. What would happen if the price of corn quadroupled (like the price of oil has in the last 20 years)? Farmers would have to actually work harder at losing money than they would to make it. It's the same thing with the oil companies - they were profitable with oil at $20 per barrel, now it has almost quadroupled. My question is, if the price of corn quadroupled, would liberals be trying to take away farmers' money, too?
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