Government! What is the
Government for? Well the Government’s role is to make and apply policies and
rules for our society. You can hate them, and you can love them. It’s a
love-hate relationship, but should they intervene when it comes to gas prices?
Many may believe in two
perspectives of business. The dominant and pluralist perspectives but which one
would be best for our society? The Dominant model holds the idea that
business/government should dominant the great mass of people while in a
pluralist model, business/government, the people (public opinion) and labor
union are all in control with attempt of equalizing power between them.
If the Government were to
control how much energy be charged for a gallon of gas it wouldn’t allow
friendly competition between companies like Shell, Chevron, ExxonMobil causing
harm to consumers.
It is better to have
competition between oil companies. Through this (Competition) it would allow us
to have a variety of prices established by oil companies. I’m not saying to make
gas prices go back to a dollar, like it was in the past, 50 years ago, because
that would cause a greater demand than supply, leading to shortages, but to have
appropriate prices established by oil companies with no huge gap in price
numbers so that oil companies are in control of energy in gas prices and with
competition in between oil companies it would lead to a healthy economy that
draws consumers and profit in, causing very good investment for the future instead
government-intervened prices, having
According to Alex Epstein,
if the government lets oil companies have the freedom to choose prices without
any intervention it could “maximize competition and lower prices”. Sometimes
governments should step in and sometimes they shouldn’t.
See according to EIA, the main components of
gas 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 concluded
that gasoline prices in the West Coast tended to be higher than in other parts
of the country like the east coast(us), Mid-west, and gulf-coast due to “strict
fuel specifications” and higher state/local taxes that they have by the
Don’t get me wrong a lot
of factors are to be considered when trying to figure why the price is the way
it is, but do we really need taxes or specific policies or regulations causing
a higher inflation in gas? No, we don’t!!
We want to implement more of a pluralistic
model, where we the people’s ideas matter just as much as the government. It limits
the power of the government so that the democratic country that we label ourselves
as, will have the choice to choose amongst different companies and the choice
to save, even if it’s just 2-10 cents.
But if the government
would want to do something they could help by legislating laws to help create
We live in a society
where everything cost money. I don’t want to be the one to be a cheapskate
because I do realize that oil and gas are valuable resources but in our society
especially in developed countries where GDP per capita is high, there is a huge
gap between the rich and the poor. The rich get richer and the poor get poorer.
The Government is one of
the biggest beneficiaries in gas. Even when looking at the portion of what is
contributed to our expense when paying for gas, it is epic. If we let
governments take over I feel like it will just go back to what happened before
large corporations broke down into smaller firms, where governments would have
too much power leading to monopolizing other markets.
If government took
control it would pretty much ruin the oil industry and their market economy.
The government isn’t
meant to run industries or take over them but to supervise and create laws that
will assist the people and make sure the competition is a fair competition and
not one like John D. Rockefeller where he devised a plan named the “south
improvement plan”, making a deal with the railroads, earning higher rebates and
larger discount causing the other businesses to either sell their company to him
or keep going but file for bankruptcy.