Insert Insight Here...

Economics and These Emails I Get

A friend sent me an email reminding me that I’m supposed to fight the man on the 15th by not buying gas. I love my friends, and everyone knows I love fighting the man, but I feel that sometimes people don’t spend enough time fighting out how to fight the man. For those of you that didn’t have to take Economics, I’ll explain.

The idea of behind not buying gas is that the oil companies will see all of the people decide not to buy gas on the 15th, and they will have to lower their prices, or else people will continue to not buy gas, and they will not have a sellable product.

The general idea is sound. Under ideal conditions, buying less of a product will cause the price to drop in response. The only problem with gas purchasing is that it’s never under ideal conditions for the consumer. Consumers cannot quickly change their gas purchasing habits. The people who do not buy Gas on the 15th will buy it on the 14th, or the 16th not necessarily because they want to, but because they have to. On top of that, many people will just accept the higher gas prices and continue their gas consumption habits. To a certain extent, it’s like a diabetic protesting the price of insulin by not buying any for a day. The oil companies know you’ll be back soon.

So maybe the best way to fight the man is by purchasing a nice gasoline hybrid made by the largest automaker in the world, Toyota. Yeah, that’s the ticket.

posted by SumThing @ 10:15 PM