Will this pricing roller coaster ever end? Week after week the gasoline prices, both cost and retail, have been up and down, then down and up. It seems that by the time the retail prices start to fall, the rack prices have already started to increase and vice versa, so you barely see even a few days of relief.
This past week there has been an interesting situation in the market. As the price of crude rose to more than $80 per barrel, the rack price continued to fall and, yes, the retail price also fell. Think about what this means for just a moment: Traditionally, as the price of crude went up, the rack and retail price also went up. The fact that this did not happen shows that the rack price is more arbitrary than the so-called experts out there would lead you to believe.
As time goes by, some readers of my column want to disagree and justify what is happening out there, attempting to convince me that record profits month after month are OK. They say, "This is America and profits are the American way."
Although I happen to agree with most of those points, I always end up at the same conclusion — it is not OK. Yes this is a capitalist society, the greatest society in the world, but I believe things are off tilt. Corporate responsibility is missing, stockholders are demanding profits, profits and more profits. After all, isn't that why they invested? Sure it is, but many of these stockholders would like to be able to pass their valuable stocks on to their children. Can we say Enron?
Some corporations have learned from their mistakes. Lumber companies now plant many trees for each tree removed. They have learned not to clear-cut forests, and that moderation and restraint today will pay off for many generations in the future.
So here is my message to Mobil, Shell, Chevron, BP and all the rest: Although record profits are great to report once in awhile, it is not good to post these record profits quarter after quarter on the backs of the American citizens. You just cannot keep biting the hand that feeds you.
It's been said that "for evil to survive good men must do nothing." Well, my fellow Americans, if we do not object and take action, gas prices will continue to climb at record speeds. (Hmmmm, I'm starting to sound like a bleeding-heart liberal.) Throughout the history of America when one side pushes too hard, the other side has found a way to deal with the situation.
The auto union pushed and pushed until the auto industry moved their factories and jobs to other countries.
The good, caring people of northern Michigan pushed the farmers for more money and better living conditions for migrant workers, so the cherry industry changed to automated tree shakers, eliminating the need for many migrant pickers.
England taxed and taxed our citizens until they were invited to the Boston Tea Party.
Please, I am not taking sides or trying to minimize any of the above examples. I'm just saying that when push comes to shove, Americans usually figure out a way to not only survive but to thrive. All through history, various leaders who've suffered from visions of grandeur, have fallen short of their goal and met their fate.
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