Gasoline Prices and Blindness

There is in my town a woman in her early middle-age I have known for about ten years. She is a small businesswoman. She thinks the current high price of gas indirectly affects her income plus, she lives far from her business and has to drive there daily. She says she is hurting.

She is convinced the “oil companies” are behind the recent quick rise in gasoline prices at the pump. I ask her who is responsible when prices eventually go down. She mutters that the oil companies are “made to” lower their prices. She is obviously not interested in the paradox.

Who do you think she voted for? Is going to vote for? I know because she told me.

I know many liberals who sound stupid. Most are simply poorly educated and lacking in intellectual curiosity, I mean in curiosity. I have a problem with the fact that the many highly educated liberals I know are not very different from my local small business acquaintance lady. Their IQs seem to drop forty points when they speak about politics.

I worry that I may have the same blind spots, the same occasional shortage of gray matter. I don’t think so though because I often detect the stubborn unwillingness to think things through in  my fellow conservatives.

See, for example,  my recent essay:

https://factsmatter.wordpress.com/2012/02/22/ugly-conservative-sacred-cows/

About jacquesdelacroix

I am a sociologist, a short-story writer, and a blogger (Facts Matter and Notes On Liberty) in Santa Cruz, California.
This entry was posted in Cultural Studies and tagged , , , , . Bookmark the permalink.

8 Responses to Gasoline Prices and Blindness

  1. Sergey Nikiforov says:

    NOte: the writer is an American of Russian extraction who knows Russian and is currently living in Russia. (JD)

    Jacques, I doubt there is a statistically significant variance in grey matter between liberals and concervatives.

    Now, what I believe we are observing here is a manifestation of a liberal make believe ideology, a sort of an imaginary world that liberals have retreated to in order to preserve their iconic posessions of good vs. evil.

    Sadly, what she fails to realise is that in a government-dominated socialistic society (the one that she is clamoring for), that’s exactly what happens: oil producers, oil distributors and oil traders (and some oil consumers) are all a part of the same state crime gang, fixing the price of energy to exactly where they want it to be, the maximum profit. Russia is a perfect example of that system.

    So, the very thing she is so angry with is exactly what she will get with her desired future for the US, a state-wide socialism.

  2. Gabriel says:

    When you say “she thinks the current high price of gas indirectly affects her income”. I believe that she is making a correct statement. It is widely accepted that increase gas prices causes cost push inflation which distorts real income. Inflation is just another form of increasing taxation.

    A good example:
    Let’s say this woman is making a 10% profit margin on her small business. Inflation is 5% so her real return is 5%. However, she will be paying taxes on the nominal 10%. The 10% multiplied a tax rate of 35% = 3.5%. From this we see she is paying 3.5% / 5% = 70% of her real purchasing power in taxes. The government likes to assume that there is no inflation when calculating your taxes. More inflation = more revenue and the government can now inflate its way out of debt. I think liberals get confused about who is the ultimate beneficiary.

    I don’t understand the statement about the oil companies being behind the price increases is what I am hoping you are referring to when you say “Gasoline Prices and Blindness”. I would argue that the higher gas prices get the more oil companies are getting scared that an alternative source of energy will arise and they will have to adapt (hence all the alternative energy ads run on T.V. by major oil companies)

    I do find it interesting that the major players in OPEC have their currency pegged to the USD so a depreciation in USD will not have a dramatic effect on the price of oil for the US, but if another countries currency depreciates against the USD…well oil just got more expensive for that country.

    • jacquesdelacroix says:

      Gaby: Yes, she is right. No example needed. I am just situating her.

      The woman is vague and illogical about what obviously affects her. She voted for Obama, of course. She will vote for Obama again.

  3. Pingback: Gas Prices Are Too Damn High « Notes On Liberty

  4. Terry Amburgey says:

    Thinking that oil companies are behind rising gas prices is misguided. Just as misguided as thinking that any US president has any control in the short and medium term. Why is it so hard to understand that there is a global market for petroleum?

    • jacquesdelacroix says:

      Terry: I am tempted to answer your question, Professor. And I yield to temptation as much as I can, these days.

      The answer is that you and I and many others who profess to be teachers have done a bad job of explaining what a market is. And it’s not surprising that the more physically remote the alleged market is the more difficult it is to believe that it’s real and the more tempting it is to substitute real live actors with real intent and a conspirational proclivity.

      When was the last time you took twenty minutes in any of your classes to say here is what is meant by “market”?

  5. Pingback: Gas Prices Are Too Damn High | Notes On Liberty

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