Quote:
Originally Posted by DaveW68
The cost of almost everything that you use every day would go down if we were oil independent. Almost everything you use on a daily basis is petroleum based, from plastics to household goods to gasoline, etc. It seems to me that the cost of oil makes everything extremely competitive. And there isn't any country more competitive than the USA.
|
Ok, so we become oil independant. Of course, because we're pumping it all with American labor rather than illegal immigrant Pakistani labor, the costs of production skyrocket, but let's ignore that for now and presume that the oil companies' costs drop because of this.
So their costs drop. What is there to drop the price? Where is the downward pressure in the automobile fuel market? They'll charge the price that makes them the most money, which may well be $4/gallon since even at this price people have only changed their consumption so much (i.e. demand for gas is inelastic). There isn't the invisible hand of competition to push the price down because there is very little competition in the sale of automobile fuel.
» Sponsor Links
