Remember when gas was only $2 a gallon? Remember saying to yourself or others “There’s no way I’m paying $3 a gallon for gas”? Remember when George Clooney said he was moving to Canada? Sorry, I digress. Anyway, what is the difference between the gas sold today and the gas sold 6 years ago? Gas sold 6 years ago had MTBE, not the more expensive ethanol. Oil and gasoline prices were a third of what they are now. The addition of Ethanol decreases fuel efficiency, and the massive increase in demand for ethanol. The roads are maintanined like they were 6 years ago, which means that there are more miles of broken roads in California. We pay more, and what do we get?
Cable TV prices have risen. Increased fees and taxes have contributed to the rise in Cable TV prices. With those increases, we have an increased value. Video On Demand, both free and paid have been developed. What was once “the sports channel ESPN” has evolved into a multi-channel plethora of every sport imaginable. Anyway, with the increased prices of Cable TV have come increased value. When the increased prices exceeds the increased value, people get upset. I noticed that without an increase in value, people will notice an increase in prices after about a 15% change. If I ever get money for a study, I’ll think about an actual study. Until then, it’s just my observation.
So we have a 300% increase in gasoline prices, and reduced value. Meanwhile, oil companies are bringing in the massive profits. Not just record breaking revenue, but record breaking PROFITS. That’s the money that’s left over after expenditures. The money that’s left over after deducting money for research and development and golden parachutes. It’s money left over after paying taxes. It’s not money that they’re using to increase fuel efficiency. It’s not money that they’re using to develop a gasoline replacement. It’s just stagnant money. It flows one way to the oil company, and doesn’t come back out.
Since this money doesn’t recirculate into the economy, is is stagnant money. It’s non-productive money. It is an actual waste of money. That’s the part that pisses me off. Not necessarily the fact that oil companies are charging what they can get for their product, but that the money is basically economically lost.
Here is my simple solution. Oil companies, listen up. This simple plan will make consumers love you again, unless they see it as a case of Too Little, Too Late, and it will need some modification in Oregon and New Jersey. Step one: Keep gasoline prices the same and owners get the same percentage of gasoline sales. Step two: The Oil Companies hire or subsidse the pay of one or two gas pumpers per station from the beginning of the evening commute until the end of the morning commute in the most major metropolitan areas. Maybe even the states can kick in a little bit of the increased tax revenues that they’ve received on sales taxes of gasoline to help subsidse the workers. In Oregon and New Jersey the gas pumpers can clean your windows or something. Give us some value for our increased prices.
Until then, BLOW IT OUT YOUR PIE HOLES!
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