big oil greed is destroying the U.S. economy

15% of current oil prices are fear over Israel-Iran.

http://www.politicalforum.com/current-events/237674-why-oil-prices-keep-rising.html

 

Was? On your way to recovery? No matter what you do, you'll only be who ya are. Big oil can do plenty of volume without soaking the country for $100 billion per year and sending America down to perdition.

 

Do you remember what the ppb was in 1986? I do..

 

And by removing cost-plus pricing you are removing incentive to create a business let alone invest in one or make even possible to grow one. There is no point in cutting costs if you have to write off the profits of doing so. There is no point in buying a factory if the revenue from that factory is all put towards the cost to maintain and purchase it.

Market failure here is equivalent to opportunity to profit. If prices are indeed too high you have opportunity to undercut.

But that's assuming even that market failure exists. In order for there to be failure there has to be market success. Defining success is completely subjective. The only way to correct the market is to partake in it, increase information, and regulate fraud. If there was such a thing as market success it would be defined as infinite production, and/or zero cost to produce. Obviously impossible. There is infinite market failure because there is no such thing as market success, and because there is infinite opportunity to increase efficiency. That singularity might exist, such as nuclear fusion or robot labor. However, applying it to our current environment is nonsensical.

You're trying to engineer an economy from the outside, in. When you should be starting from scratch and working your way out. Economic success is not defined by the lack of profit, but the abundance of consumer needs met. Needs are met by profits, through growth and investment demand. It's ludicrous to say investment would exist without profits.

Oil prices are down, the banks just inflated your savings account away and left your wages in the dust.

 

Its profit that determines firm creation. Note that small firms aren't able to adopt standard cost-plus pricing methods. They refer to the desire, but are forced to adapt according to standard supply and demand criteria

 

More baseless statements, try using some logos or ethos rather than pure propaganda.

A business with no profits can't even pay taxes without down-sizing, let alone stand the test of uncertainty in it's environment.

 

You show your contempt for supply and demand, nothing more. You right wingers are properly extreme when it comes to attacking basic economics!

 

I don't feel like drawing connections between your seemingly unrelated sentences. It's not my responsibility.

Maybe you have a point, but how am I supposed to know when you cannot form proper arguments. It's like you are talking to yourself in every post, expecting the autistic statements to be held with as much faith as you hold them yourself. Here in the real world, whether you're right or wrong, you still have to make your case. In order to do that you need to understand your audience. If you're explaining to a uni-lingual german speaker why brushing prevents cavities, you shouldn't tell him it in mandarin. You're just going to look like a rambling fool.

Speaking of you not understanding your audience, either you lack cognitive function of putting yourself in my shoes or you don't understand the austrian perspective on the economy. Which could be why you attack it at every corner with nonsensical arguments like profit is "inefficient" and I don't believe in any neo-classical economics.

I actually believe in most all of them, barring their execution and the fractional reserve ponzi scheme. Which has indirectly been disproven to work by neo-classical economists themselves.

 

The problem is that you don't understand supply and demand. You neatly advertised it with your previous post. As I said, economics isn't for right wingers

 

And until you make that point, you're just rambling in mandarin. There are a thousand and one interpretations on supply and demand, if you're unwilling to debate it you probably don't understand all of them.

 

As I said, you're typing with a clear ignorance of supply and demand. You're then blaming me for it. Weird behaviour to be fair!

 

Telling me I don't understand supply and demand, is not going to get me to believe I don't understand supply and demand.

The same way me telling you I screwed your mom is not going to get you to believe it, until I show you pictures.

 

That's the problem with uncertainty. Folk aren't just ignorant, they are ignorant of their ignorance and ignorant of their ignorance of their ignorance etc etc etc

 

I might start trolling you with your "debate" tactic.

You're ignorant of the mechanics of how you can turn urine into gold. And you're blaming me for it.

Was that convincing?

 

I adopt only one tactic: make sure I first know what I'm talking about. Your error over supply & demand informs me that you don't adopt that tactic.

 

You show a clear ignorance of the flying spaghetti monster. Your lack of proper grammar tells me you don't pray to him. Come back to me when you are saved.

 

Instead of offering prance you could be reading up on supply & demand. On the bright-side you do offer a good example of the problem within opportunity costs and how bounded rationality impacts on the analysis

 

Instead of blaming "big oil", why not blame the oil speculators and OPEC. After all, that is where the price of oil is actually set. The oil companies simply follow the cost, no matter what it is.

Blaming the oil companies for to much profit is like blaming the gold mining companies for making to much profit. It may sound nice, but they do not set the price they sell their product at.

And some of us even remember the time in the mid 1980's when the oil companies were going broke. Because the price of oil was so low, that some were actually selling their oil for less then it cost them to produce it.

They did not set the price then, they do not set the price now.

 

President Barack Obama said:

New Gingrich said:

2.3 million barrels a day injected into the world market from American shores is nothing but a plus for America and the world in the short to medium term. There is no reason we couldn't exploit our resources to the max for another 20-30 years to get us into the Renewables Age.

Blame your extreme environmental radicals for the price of gas going up.

 

Shortages occur when demand is high supply low, rising prices. Surplus' occur when demand is low and supply is high.

My understanding of supply and demand is explicit in causation, yours seems to be implicit. Supply and demand is a reflection of the fact that shortages occur when supply is low and surplus' occur when supply is high. Supply and demand is an effect not a cause. Profits are therefor irrelevant in my economic worldview of supply and demand. In fact profits are what create the curves because without them there is no incentive to prevent shortage or surplus.

 

Sorry, but you can't blag understanding now. You confused supply & demand with cost-plus pricing (with the latter generating quite incompatible reactions to economic shocks). A very poor error

 

Do you post for any reason at all? You're very terrible at explaining what the hell is going on in your head.

 

Again you try to blame me for your failure to understand supply & demand. Teach yourself the basics and then get back to me

 

No thanks. Seems we have a case of the Dunning-Kruger effect here.

Besides, supply and demand is a very broad subject. You have yet to point out even a direction of what I "don't understand." How reiver of you...And you have not provided any reason for me to do so. Other than to trust your word that you are right and I am wrong. Do you know how many wrong people there are out there? It takes a mighty big ego to tell a complete stranger who doesn't agree with you on the simplest of things, "trust me, on my word and my word alone that I am right and you are wrong. And btw I have no reasoning to give to you why this is so."

I'm betting this is just a cop out due to me ripping your argument to shreds. Pull a broad subject and blame my "misunderstanding" of it. Silver bullet to any insecure troll.

 

That's a shame. Knowing basics like supply & demand would only improve your ability to make economic comment. I reckon you'll change your mind. I'll give you 24 hours to come back with a statement over the incompatibility between cost-plus pricing and supply/demand. Time starts....Now