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I know: It's definitely not price gouging (insult away, BTW)

Discussion in 'Anything goes' started by Columbo, Jul 27, 2006.

  1. Pastor

    Pastor Active Member

    Right. But why is it that so many companies were this shortsighted in their production?

    JR posted the article on how the American automotive manufacturers are in a world of shit because they banked on getting high profits with the SUVs.

    So, I'll throw this out there as well: the American automotive industry is in a world of shit right now because of that move. Now they are shuffling to put out these high mpg vehicles and they aren't very good.

    Chances are the American government is going to step in and subsidize it for a while just so they continue to exist. However, should my idea be implemented you now level the playing field and even provide a leg up to the American car companies since their top market, the US, will be the one desiring the new technology.

    I have a high-definition TV. I have a high-definition satellite receiver. I subscribe to my provider's high-definition package.

    I get . . . 9 high-definition channels. Local channels became available in my area a month ago. A dish upgrade will give me about 15 HD channels.

    The government may have mandated it, but they have pushed back the deadline so many times that it doesn't seem like much of a mandate.

    Right now we're about as close to being energy independent as I am to receiving more than half my channels in HD.
    They may be continuing to push back the requirement date, but I get more HD channels than that in my house because I have cable instead of satellite.

    On top of this, the point that is made is do these cable providers go out and spend the money on HD equipment if the government doesn't step in and say, "This is what you are doing"?


    It really is that simple. You mandate the fuel source and you have the car companies do the rest. You give them a date and you threaten them with fines and penalties.

    You are using Agent X. We want 33% of your cars sold in 2010 to be running on Agent X. Every gas station in America will be selling Agent X in 2009.

    Now you have every car company that gives a shit about the American consumer starting from zero. Ford, Chevy, Chrysler, Honda, Toyota, it doesn't matter.

    To top it off, you have an easy way to sell it to car companies: You are the only ones that know how to repair, tune-up, change the lubricant when your car comes out. Those dealer repair shops have little to no competition.
     
  2. Ragu, I've already said I'm against price controls. I'm talking about specific, temporary fixes - like a windfall tax on oil companies, tax relief for consumers, removing gas taxes completely, exerting pressure on gas companies - whatever. Just think creatively.

    You seem to be saying you either take drastic measures or you don't do anything. I'm saying nit-pick, look for smart solutions. It's not about big government or laissez-faire government. It's about smart government. Which is why we know it won't happen.
     
  3. BTExpress

    BTExpress Well-Known Member

    A former collegue of mine owned the exact same model of house as I have and sold it for $240,000 . . . 15 months ago.

    $240,000 to $380,000+ in 15 months.

    Is that a little closer?

    Hazard insurance premiums in my area are going to rise 100% next year. On top of that, I can't move anywhere in my area because my property taxes would double.

    I have a lot more control over my gasoline bill than I do my housing costs, even with a fixed-rate mortgage.

    And when the Supreme Court rules in favor of the car companies that such mandates and threats and fines and penalties are unconstitutional . . . ?

    Then what?
     
  4. Pastor

    Pastor Active Member

    BT, that is all fine and good with your house. However, there are people that can't afford one right now. As such, they are sitting in an apartment somewhere wishing their rent money was a mortgage payment.

    You purchased your house, I presume, at the right time. Well, what about the person next to you that has only now reached that level in their life, ie. financial stability, where they can begin to look. Then they see the prices and are shunned back into a shell.

    You can't simplify the expense of gas into just, "Hey you have control." Not everyone does have control, even the ones that don't even own a car.
     
  5. The Big Ragu

    The Big Ragu Moderator Staff Member

    None of that is very creative, RWH. You're still looking for that free lunch that doesn't exist.

    1) A windfall tax on oil companies won't avert a recession. It will bring it on faster. It would also likely have the ridiculous effect of gas prices increasing, which is what you are trying to avoid. If the refining companies don't increase prices to pay the tax, then look for gas shortages depending on how heavy the tax is.
    2) Tax relief for consumers = government deficit & debt. That may be a populist move and it may slow the onset of a recession, but it likely means a greater, longer-lasting recession down the line and higher taxes eventually to make up for all the debt we've accumulated. This is about choices. Are you willing to pay the piper later --with heavy interest--to get some relief right now? Most people think this administration has lowered taxes too much already given that they've been spending like drunken sailors. It may be why we actually are facing a recession right now that is much nastier than the next cyclical recession would have been.
    3) Removing gas taxes completely = less government revenue. See # 2 about government debt and the effects.
    4) Exerting pressure on gas companies. Not sure what this means. The management of Exxon-Mobile is motivated by pleasing its shareholders, not pleasing your local Congressman. A "pretty please" ain't going to get it done. Either way, it's not like the oil companies are arbitrarily setting prices. Market forces are.
     
  6. alleyallen

    alleyallen Guest

    Blessings on you for your take, Pastor.

    That seems to be the mantra and it's maddening.
    * Buy a new car
    * Move closer to work
    * Get a different job
    * Don't drive, walk.

    I got an idea. You move to this part of Texas, take a job that helps you meet all your requirements like a mortgage and likely have no money for a car payment and see where it leaves you. You try walking to work. I'll be shaking my head as you fall into a ditch dying from heat exhaustion in about an hour. Meanwhile, here in the real world where few people own $300,000 homes and can afford to be two minutes from work, gas prices are just one more area that's eating us alive and leaving us little hope in an economy that's supposedly booming but we're not seeing.
     
  7. BTExpress

    BTExpress Well-Known Member

    I honestly don't know.

    Sometimes it's better to be lucky than smart. Oftentimes I'm neither.

    I was lucky I bought my house just before prices skyrocketed.

    I was unlucky that I couldn't sell my Tribune retirement stock when it reached $60. Although I could have moved it to a safer haven a couple of years later when it got back up to 51.

    But I didn't. And my retirement portfolio lost $51,000 last year. How does that compare to your increased gasoline costs?

    That's life. But I certainly don't expect the government to come in and artificially inflate TRB's stock price so I can recoup my tens of thousands of dollars in paper losses.
     
  8. alleyallen

    alleyallen Guest

    And nobody's asking the government to do that. But just because you're living fat and happy doesn't mean the rest of the country can, and prices of a critical resource being driven up to fuel profit at the expense of the customer -- who has no other options -- hurt people who have limited incomes. Plain and simple.
    It's wrong in the health care industry and it's wrong in this case as well.
    I never claimed to have the answers or solutions, but I can certainly see the value in doing something other than citing market economy concepts. Like that's going to feed anyone.
     
  9. The Big Ragu

    The Big Ragu Moderator Staff Member

    The "government" doesn't have some magic potion, dude. If you refuse to see the problem logically, you'll never see why your "solution" is so hard to find. Use logic. You have a commodity that is in high demand--and demand is increasing. You have short supply of that commodity. Bitching about the fact that the commdity has gotten costly doesn't make more of it magically appear.

    It sucks that you are being hurt by fuel prices, but refusing to see that the price of gas is being driven by market forces and not someone hell-bent on screwing you, and railing about the magic, non-existent government wand you expect to fix it, doesn't change the fact that it is an intractable problem.
     
  10. Pastor

    Pastor Active Member

    BTE, I've never advocated the government coming in and reducing the price. I've only advocated the replacement of gasoline. I am, though, more empathetic when it comes to those in situations like AA.

    Gas prices are an incredible burden on me. Between my various drives to vacation locations, my flights halfway around the world to China and Europe and my commutes to work, I'm always looking down upon those that artificially inflate my costs so they can have greater gains.

    My wife drives to work in one direction while I drive to work in another. If we tried to move closer to either one of our jobs in order to eliminate one of our cars, we would be looking at a minimum of $600K for a house, and I'm not talking about some mansion either. The increase in mortgage payments would far outweigh the savings in gas money, car maintenance, and NJ car insurance.

    Right now, my wife and I are on stable footing financially. However, life isn't always like that. My in-laws are getting older and their health could become a question. Morally and as an only child, my wife feels obligated to help any way she can. They are half a world away which means unexpected expenses on flight tickets, a possible drop in income due to excessive vacation time, and possible medical expenses for our loved ones.

    Now, you can say, "Well those are the choices you made," and you might be right. However, not everything that occurs in life is broken down by choices. You don't choose to love one person over another, it just happens.
     
  11. BTExpress

    BTExpress Well-Known Member

    I empathize with all of that. I just choose to look at the positives, because things could always be worse.

    You have a loving wife and a loving home . . . and not four empty walls and a killer alimony payment.

    You have in-laws you are close to (emotionally if not physical distance) . . . many people are estranged from theirs.

    You can get to them in time of need, albeit a financial sacrifice . . . some people are so bad off they simply couldn't make that choice.

    And gas could be $5 a gallon . . . which won't happen . . . until at least . . . November? ;) ;) ;)
     
  12. alleyallen

    alleyallen Guest

    Basically, according to you, I just have to bend over and take it like a man. Thanks. I expected more out of you.
     
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