Re: E-85

FMD - The only time capitalism runs away and sets the stage for price gouging is when there are artificial limits placed on the market (i.e., government regulations). The days of robber barons are past. You talk about food price gouging. In fact, if the government didn't have various artificial price controls in place, food would be less expensive here. Look at sugar - we pay significantly more than the world market price because the government controls the price here. With gasoline prices, the primary reason we have high prices is not lack of crude oil, it is lack of refining capacity. Regulations and environmental lawsuits have effectively prevented the construction of new refineries for many years. So as Americans satisfy their urge for more, bigger, and faster, the supply of refined fuel remains essentially unchanged. This means that whenever there are serious production shortfalls - unplanned maintenance, severe weather, etc - the supply of gasoline takes a hit. To answer why the prices jump so quickly in such situations, one reason is that smart business owners do not charge the cost of purchasing stock, they charge the replacement cost. That is not a defense of oil company tactics, that is simply business 101.

When there are major developments that lead to dramatic long term changes in prices, the market moves to produce more. There are plenty of entrepreneurs and investors more than happy to take advantage of a market, and this will drive prices down. Short term it will be painful, but the market will correct itself. And we have to be intellectually honest enough to realize that some things get pushed out of the market because they no longer serve the market the way they once did. The problem with gasoline is that the investment to enter the market is so large, and the regulatory burden also makes it exceedingly difficult.

What really disturbs me is the public outcry for the government to step in and control businesses and redistribute wealth. Again, I challenge anyone to point out where the constitution grants this authority to the government. We are headed toward socialism, and that is not something that I want. It seems that the ones who clamor the most for socialism are the ones who stand to be on the receiving end of the redistribution, living off the work of others. As the saying goes - the government that robs Peter to pay Paul can always count on the support of Paul.

And before you label me as a greedy, non-caring person, let me tell you my position. There are two schools of thought: One is that people should willingly give to causes that they feel are worthy, and the other is that something should be done and everyone should be taxed to make it happen, whether they think it is a worthy cause or not. I happen to belong to the first school of thought. And I would be willing to bet that I give a higher percentage of my income to charitable causes than you do. Instead of saying that there ought to be a government program, I do on my own.

Off the soap box now. This has really turned into a political discussion, which, in today's world, all too often becomes nothing more than personal attacks. I hope this is taken as merely an expression of my sincerely held political beliefs. You are entitled to yours.