Why did Ben Bernanke say that rising gas prices were largely a problem of supply and demand?

Question

I thought you morons said it was because of Bush?

Gas prices go up in the summer, when demand is at its peak. Gas prices go down in the winter, when demand is at its lowest point. Pretty simple.

Yeah dstr, I guess Bernanke's an idiot too. Geez, he's only the Federal Reserve Chairman.

OPEC sets the price for a barrel of oil, no?

Our government makes more money on taxes on a gallon of oil than the oil companies make, far more.

gallon of gas rather

What's an acceptable profit % for oil companies, 8-9% sounds about right. It's business, not charity.

rm_a_gedon that's good stuff. Probably over the heads of most of the Yahoo crowd though. You lost them at the part where Bush is not to blame.

Answer 1

Prices at the pump move up and down for a variety of reasons, none of them have ANYTHING to do with the President.

Supply, speculation, demand and good old capitalism all have an effect on what you pay.

Supply is always a prime mover of price. If there is a greater demand than there is supply, price goes up. Simple math really.

Fear of global disruption of supply will have an affect on speculation, bidders will bet that supply will go down or up and bet on that move.

As for demand, China is becoming a larger and larger consumer and that move is going to continue for some time. In the US demand has actually gone down since the 70's largely as a result of the last large price bumps. Perhaps when China does develop its own fields demand will go down for OPEC oil but until then you can expect an ever increasing demand and thus price at the pump. Maybe if we bombed China back to the stone age we could get the Democrat/Socialists their cheap gas, after all they have been told by the Socialists in Congress that it is there right to have cheap fuel.

Finally let's address competition. No one in business wants to have excess supply, it erodes profits despite what idiots think. No one in business wants the guy across the street to have higher demand because he is ten cents lower per gallon so they respond by lowering their price at the pump. Again this is pretty simple one plus one equals two.

I have to admit though I have never met a liberal who understands basic economics, given that I believe you will still have the attack on the administration for high gas prices, that is until the lunatics seek psychiatric help and take some basic economic classes.

You are aware that showing economics to socialists is like showing a cross to a vampire, they shriek and run away into the darkness of evil.

I forgot one key element, in 2001 the WH put together a very comprehensive energy policy. It happens to contain EVERYTHING the current socialists are putting forward as their plan but for some strange reason if you did not search for this plan you would never hear about it on the news. Wonder why that is?

Answer 2

i think it's because supply and demand are abstract concepts that don't require explaining. they sound very important and self-righteous so people don't question them. so people like bernanke, who is a talking head of the admistration say things like that and most people don't have the impetus to question him.
bush is not directly responsible for the rise in gas prices. it's not like he wakes up and says 'i think i'll raise gas by 10 cents a galln this week'. but his foreign policy is responsible. if you need proof just look at gas prices before the war and now. demand hasn't increased significantly enough to warrant this kind of rise in prices. but instability has. many uncontrollable things affect world oil prices including supply and demand, natural disasters, refinery accidents, etc. but the unecessary/illegal invasion of a country right next door to the largest oil fields in the world is definitely controllable. that's how bush affects oil prices.

Answer 3

Um funny I thought gas prices were affected by the upcoming November election. Like back during the Presidential election in 04 when Bush made a secret deal with Saudis to keep the price of oil down through the election, and he did it stayed down, but then shot right back up.

Answer 4

Let's put it so simply even a TROUT can understand .

You have one worm , 50 trout want it .
Who are you going to give it to ?
The trout ,that is willing to give the most in exchange !

If somebody is heavily invested in CRICKETS , They want to control the worm market by limiting the supply , so they can sell more CRICKETS ( alternative food ) .

When a certain political party gets not of the way , we'll drill for more American oil , build the refineries we need , hire the people to do both , and Things will stablize .

Answer 5

I recent the all inclusive "you" in the above statement. I most certainly do not blame the Pres. A few greedy middle men maybe but that is life. We just have to change our ways and stop driving HUGE, gas guzzling SUVs and pick-up trucks (when not really neaded - except to stroke an ego.)

Answer 6

It is affected by supple and demand. Supple is low, demand is very high, and that drives the price up. People blame Bush because he doesn't appear to be trying to do anything about it to either lower prices or to find alternate sources of fuel and energy.

Answer 7

Actually it is Bush, or whoever is president at the time. Haven't you ever noticed every single summer gas goes up? And thery always have the same reason for it? Then in winter all of a sudden it goes down, for the same reason they give every single year. When will Americans learn?

Answer 8

Maybe the blame should be on the greedy people that run oil companies. As long as people pay high prices they will keep jacking them up

Answer 9

One more time IDIOT a person like Bush can Influence the events that drive up prices ..now does you pea size brain understand?

Answer 10

Its easier to blame Bush then the 50 gallon tanks on their SUVs and minvans.