Does anyone else see a problem with that? Maybe it's just me but we are having to struggle due to the increase in gas prices yet they are making 6 figure bonuses and what not. Why should the average working person have to struggle and they practically have nothing to worry about.....their making the big bucks. And why hasn't the president stepped in yet?
2006-10-26 06:22:10 · 7 answers · asked by TxCutie 1 in News & Events ➔ Current Events
Econ 101 for some part of it- Supply and demand, and right now China is consuming tons of resources.
6 figure bonuses? Think again- higher than that.
President hasn't stepped in yet because those execs are his buddies and supporters.
2006-10-26 06:32:59 · answer #1 · answered by wvucountryroads 5 · 0⤊ 0⤋
Exxon or any other single company in the oil industry does not set the market price. The oil industry is a world market with an oil consortium (OPEC) which tries to manipulate the oil price. In some sense it is supply and demand, but then you add the manipulation and speculation onto the price which drives it up. States also add to the price of gas with extra taxes.
Do I believe the price of oil/gas is way too high? Absolutely. Do I think the President should step in? I don't know if I want government getting involved in setting prices. If you mean step in by granting money for alternate fuel sources, I might be willing to accept that if it produced results (not wind power, or solar power, either...).
When there were gas shortages before, people bought gas efficient cars, conserved energy, and prices fell again. Now, people still are buying big SUV's and trucks, but bitchin at the pump that someone else should do something.
2006-10-26 06:38:01 · answer #2 · answered by Barry 3 · 0⤊ 0⤋
You would not believe the various forms of taxes that are added to a gallon of gas. Local, state, and federal. If the oil company were to cut back on the price, the government would just add more taxes. One reason taxes are added is to keep the price high so we'll drive less and then they'll be less pollution and the ice caps won't melt and we won't all drown. OIl companies make big profits because getting oil is a risky business. The bigger the risk, the more profit. I well remember gas rationing during the Carter administration in '73 and I was tickled pink to get my 5 gallon limit every other day. I had to wait in line for a couple of hours. I swore then I'd never complain about oil companies ever again. The president can do very little about oil prices or the price of any other commodity. Orange juice is really high right now. How could the president get me cheaper orange juice?
2006-10-26 06:37:57 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The reason gas prices have been high lately is due to supply and demand. There is more demand for gas than there is supply so thats why the prices are so high. The price is determined on the trading floor not by ceos of the big oil companies. Yes the companies are profiting from these high prices, but they also suffer when the prices are lower. Its the nature of the business...
2006-10-26 06:33:11 · answer #4 · answered by C_C 2 · 0⤊ 0⤋
Yes. The law of supply and demand is at play. But more importantly are the tax breaks/incentives given to Exxon and other oil companies by their friends in Washington. Breaks/Incentives they do not need. In the mean time the airline industry suffers through bankruptcies, cutbacks, pension adjustments, salary cuts. Go figure.
2006-10-26 06:35:33 · answer #5 · answered by Q&A Queen 7 · 0⤊ 0⤋
That is the nature of business. They are not a charity, they are in the business of marketing their product for maximum profit for the shareholders. Government usually only intervenes if they determine that a monopoly has developed since the free market system justifies itself by claiming encouragement of competition. If there are other gas businesses, government has limited options of intervention.
2006-10-26 06:28:22 · answer #6 · answered by kate 7 · 0⤊ 0⤋
high gasprices high profits, even I get that
2006-10-26 22:20:29 · answer #7 · answered by acid tongue 7 · 0⤊ 0⤋