Quote:
Originally Posted by TrueNative
Beautiful idea....until the oil company's release a statement that would go something like,
"Due to the financial hardships we have recently faced after bailing out the automakers, gas prices will be $5.00 a gallon to offset losses."
We will pay for it one way or another.
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First of all, I believe that oil companies report profits higher than any other industry or something along those lines. They can do it because we will pay it. It seems to me that the price of gas rarely has anything to do with the cost of doing business. They can most likely afford to bail out the car companies without passing on the cost to us...doesn't mean they wouldn't use it as an excuse if forced into it, but the proposal was that they would do this voluntarily to promote demand, down the road.
2nd, keeping the gas guzzlers coming is going to keep demand high which is in the oil companie's best interest. So bailing out the car companies would likely raise the cost of gas, but only down the road when we continue to have gas guzzlers on the road sucking up the supply with their demand.
I haven't researched it, but I bet gas prices are low right now because demand has gone down due to the high costs forcing people to change their vehicles and driving habbits. We're starting to curb our oil addiction so they're making it cheap again.
That's my take anyway.