I see there is talk of reducing state/prov. taxes on gasoline so as to ease the economic burden on the daily driver. We all want our burden eased but do we believe in capitalism.
A major pillar of capitalism is supply and demand. The war is making supply side less dependable therefore the price goes up. The price goes up the consumption goes down the market finds its balance and we ride it out.
Governments USA/Canada say we must ease the pain at the pump, after all its not our citizens that are to blame for this war. Are we to blame I could make a case.
Here come the paperboy economics:
we drop the tax/ lowers the price/ you continue to consume at pre war rate/ the oil companies continue to profit at pre war rate.
The whole reason we allow oil(control market) to raise and lower the price is because we think its fair/justified, its capitalism.
We artificially lower the price by dropping the tax, the tax payer gets to lose all the tax revenue which would have normally been generated. The end user (us) continues to consume, the oil companies profit remain the same, who wins. If you have an interest in this consider, Russia has stated in the not distant past it wants Rubles not greenbacks for its oil.
Study petrodollar financing you might be surprised.
So what is the result here:
The pain is lessened, we are thankful to our leaders, the war goes on, the profits remain.
Russia is taken out of the market. Remember the oil market is dwindling, I must generate more profit per commodity to maintain profit.
Certain politicians get to look like hero’s
Certain things get forgot
The citizenry get more pressured
etc.. etc… etc….
shawn663