Is "supply and demand" price hikes a natural occurance or is it a choice of the businesses to raise prices so sharply? Why does the oil companies tell us they HAVE to raise prices because supply is low, dont they mean they WANT to raise prices because supply is low?
2007-05-02 00:16:25 · 7 answers · asked by samanthakhz 2 in Politics & Government ➔ Other - Politics & Government
America is prosperous. The stock market is higher than ever. Unemployment is lower than ever. The average paycheck is larger than ever.
Say there is a snow storm coming and you have 5 snow shovels to sell that you paid $5 each for.
You know that there is a shortage of snow shovels for you to purchase to replace the ones you sell. The new shovels will cost you $8 each. If you do not raise the price on the shovels you bought for $5 you will not have enough money to buy more to replenish your inventory, and you will be out of business.
Your customers will not understand this...hey you already paid the lower price for the shovels you have, so why are you raising the price on them?
2007-05-02 00:34:52 · answer #1 · answered by USAjane 2 · 1⤊ 0⤋
Unemployment under 5% is not prosperous? Mortgage rates at 6.5% is not prosperous? Inflation at 2.5% is not properous? All of those are very low historically and require we have a strong economy. But long term America will slide into high unemployment and high interest rates as inflation takes off due to falling productivity. All this will result from maturing Socialism. We are in the Honeymoon stage of Socialism now but over 50% of American get major income off the government and in time taxes must go way up to give these kind of hand outs. Then the economy will begin a slow collapse and we can be like our model France with double the unemployment and suicide rate. Then you will see a true lack of prosperity.
2007-05-02 07:40:03 · answer #2 · answered by Lighthearted 3 · 0⤊ 0⤋
America IS prosperous. WE have had several Years of continuous economic growth. We have not had a single declining quarter since the shock of the 9/11 attacks. Look it up.
Other economic factors affect the price of oil-- your gas station isn't just raising the price for no good reason...
Oil prices have very little to do with the war in Iraq right now. As China's economy expands, it buys more and more of the World's supply of oil. With a couple of Billion people, they can use as much oil as they decide to.
With China buying so much, it leaves less for the rest of the world to compete for. The basic law of economics says that as supplies decrease, prices go up.
You can also thank Venezuela-- another oil producer and a member of OPEC. Their president just seized control of all the private businesses that produced oil in that country. Anytime politicians meddle with oil supplies like that, you see an instant spike in market prices.
2007-05-02 07:34:32 · answer #3 · answered by chocolahoma 7 · 1⤊ 0⤋
Maybe you missed the bulletin but America is prospering. The Dow is setting new records every day. The rising oil prices are a direct result of our dependance on foreign oil. If we could tap our own underground resources, the prices would come down.
2007-05-02 08:07:13 · answer #4 · answered by libstalker 4 · 0⤊ 0⤋
The American economy is growing with the tax cuts implemented by President Bush except for the state of Maine where draconian taxes are used to provide welfare for the illegal aliens in a sanctuary state. The taxes have bottomed out the economy of Maine and is bringing universal poverty to all of the residents. Maine is also getting welfare recipients from all the other states where the recipients have used all the welfare they were allowed in the state where they were living. It is really changing the color and culture of the state and many many Hispanics and Somalians are now residing here and they demand respect without showing any themselves.
Your question shows a weak or mislead understanding of economic laws
2007-05-02 07:36:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋
America is prospering
Do not blame America for what OPEC Decides to do with the price of oil-were we not in Iraq there would be open prices to charge as high as the sky.
the answer to all this is as it follows Jesus-heart and soul, and the parts that have sanctioned murdering partial born babies -now unsanctioned, and sanctioning adultry, fornication, and sodomy-as athiesm and others rise America falls-yet we have the most missionaries to the rest of the world but South Korea is gaining thank God for that too.
2007-05-02 07:23:51 · answer #6 · answered by Anonymous · 1⤊ 1⤋
Gas prices have nothing to do with weather or not we are prosperous. If you can afford the gas then you are prosperous.
2007-05-02 07:27:41 · answer #7 · answered by bildymooner 6 · 1⤊ 0⤋