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Originally Posted by GottaDiesel
Oh brother.
If I make something and sell it for $10.00 and it costs me $5.00 to make I make a $5.00 profit.
If I make something and sell it for $30.00 and it costs me $5.00 to make I make a $25.00 profit.
Exxon, etc. had a record breaking profit quarter. This means they are **MAKING** more money. So either they are (in general terms)
a) selling more of something at their current prices (not the case)
b) selling the same amount of something with lower costs (most likely not the case)
c) selling the same amount (or slightly more or less) of something and selling it for more money (this is the right choice)
This thread has *nothing* and I mean NOTHING to do with conservation, supply or demand and EVERYTHING to do with PROFIT. Do I think it is wrong to make a profit? No way Jose! -- Do I think it is wrong to do it by telling the American people a line of bullcrap? You bet!!!!
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They make more money because people want more of it and there is a limited supply. That's what we call, "supply and demand."
What happens when prices go up?
1. Consumption decreases, making more product available which brings prices down. It dropped $.25 here this week, for example.
2. It encourages development of means and methods for moderating the price--increased efficiency of fuel consuming items, for example. Or more R&D on alternatives. What does that do? See #1.
Maybe instead of driving your whine-o-matic all about you could try something really innovative, like changing your own patterns of driving. Or invent something. Or invest in an oil company and enrich yourself.
Or you could work to have oil companies nationalized so that some bureaucrat would determine what a fair price is. Like they do in Europe. Instead of calling it "profit" they call it "tax." And the bureaucrats decide how much to spend and on what projects.
Give it some thought.
B