Government! model, business/government, the people (public opinion) and

Topic: BusinessMarketing
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Last updated: June 8, 2019

Government! What is theGovernment for? Well the Government’s role is to make and apply policies andrules for our society. You can hate them, and you can love them. It’s alove-hate relationship, but should they intervene when it comes to gas prices?Many may believe in twoperspectives of business. The dominant and pluralist perspectives but which onewould be best for our society? The Dominant model holds the idea thatbusiness/government should dominant the great mass of people while in apluralist model, business/government, the people (public opinion) and laborunion are all in control with attempt of equalizing power between them.

If the Government were tocontrol how much energy be charged for a gallon of gas it wouldn’t allowfriendly competition between companies like Shell, Chevron, ExxonMobil causingharm to consumers. It is better to havecompetition between oil companies. Through this (Competition) it would allow usto have a variety of prices established by oil companies. I’m not saying to makegas prices go back to a dollar, like it was in the past, 50 years ago, becausethat would cause a greater demand than supply, leading to shortages, but to haveappropriate prices established by oil companies with no huge gap in pricenumbers so that oil companies are in control of energy in gas prices and withcompetition in between oil companies it would lead to a healthy economy thatdraws consumers and profit in, causing very good investment for the future insteadgovernment-intervened prices, having According to Alex Epstein,if the government lets oil companies have the freedom to choose prices withoutany intervention it could “maximize competition and lower prices”. Sometimesgovernments should step in and sometimes they shouldn’t.  See according to EIA, the main components ofgas are crude oil, refining costs and profits, distribution/marketing costs/profits,and taxes with oil being the largest factor in the retail price but it was concludedthat gasoline prices in the West Coast tended to be higher than in other partsof the country like the east coast(us), Mid-west, and gulf-coast due to “strictfuel specifications” and higher state/local taxes that they have by thegovernment.

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Don’t get me wrong a lotof factors are to be considered when trying to figure why the price is the wayit is, but do we really need taxes or specific policies or regulations causinga higher inflation in gas? No, we don’t!! We want to implement more of a pluralisticmodel, where we the people’s ideas matter just as much as the government. It limitsthe power of the government so that the democratic country that we label ourselvesas, will have the choice to choose amongst different companies and the choiceto save, even if it’s just 2-10 cents. But if the governmentwould want to do something they could help by legislating laws to help createmoreWe live in a societywhere everything cost money. I don’t want to be the one to be a cheapskatebecause I do realize that oil and gas are valuable resources but in our societyespecially in developed countries where GDP per capita is high, there is a hugegap between the rich and the poor. The rich get richer and the poor get poorer.

The Government is one ofthe biggest beneficiaries in gas. Even when looking at the portion of what iscontributed to our expense when paying for gas, it is epic. If we letgovernments take over I feel like it will just go back to what happened beforelarge corporations broke down into smaller firms, where governments would havetoo much power leading to monopolizing other markets.If government tookcontrol it would pretty much ruin the oil industry and their market economy.

The government isn’tmeant to run industries or take over them but to supervise and create laws thatwill assist the people and make sure the competition is a fair competition andnot one like John D. Rockefeller where he devised a plan named the “southimprovement plan”, making a deal with the railroads, earning higher rebates andlarger discount causing the other businesses to either sell their company to himor keep going but file for bankruptcy.

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