REPLY TO GAS PRICES

[W Grimes <tuh004@MAIL.CONNECT.MORE.NET>]

FYI:  gasoline has inelastic demand....any effect of a "gas out" is (or
would be) short lived...and a long term economic return does not
exist....and could not exist.  (the only effect would be postponement of demand)

surely someone remembers econ. 101.

you want gas prices down...?   lift the "sanctions" against Iraq in exchange
for below OPEC crude prices from Iraq....then the oligolopy's strangle hold
on the cost of gas would be effected...however, this scenario would require
Iraq to go against its fellow OPEC nations... which support the current
market price (actually they control it) and OPEC has little interest in
maintaining a petreoleum economy based on competition. (now that they have
effectively reduced the competition (US) from producing enough gas to meet
its aggregate demand, from the supply we have decided to produce, because of
competition).

by the way,  our last gas shortage and high prices were  caused by the
Carter's administration's tax policy on "new drilling" and "new wells"...
once the "regs and taxes" were lifted on new oil, it forced the OPEC nations
to become competitive,  causing OPEC to lower the prices below American
prices...and thereby forcing American drillers / oil companies, to reduce
investments in "additional" new oil... and helping set the stage for OPEC to
have the upperhand in the market.... and now we (with an inelastic demand)
are "hooked" on their oil at their "going price".......... bottom line:
capitalism is still alive and well  (we were out foxed by the market system,
being used against us......it is now our move...and a gas out is not the
right move...it is no more at all).



Wade Grimes             http://oseda.missouri.edu/elsberry.k12.mo.us/wgrims.html
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