February 10, 2015

On being Nostradamus

At the risk of inciting the wrath of the lovely EOB I am going to offer another prediction. Gas prices are about to rise significantly in the short term in certain areas of the country as the unions begin to strike at key refineries across the nation. Union leadership knows that striking when gas was $4 a gallon would have brought on the wrath of the public.

--- What, you liberals do not understand?  You see the primary market force is supply a demand. When there is less of a good, the price of that good rises.  When a product is plentiful the price drops. That is why there is always a black market anytime the government interferes in an economy.

Union leaders see that oil,prices are low so adding 10-20% to the price at the pump do to decreased refinery output carries much less risk to the union and its members in public relations.  In the end you and I will pay more.

2 comments:

Fuzzy Curmudgeon said...

This morning's WSJ agrees with you, but more because production is trending downward due to low prices and the resulting glut.

Anonymous said...

Think the Union leaders will allow the wages to be reduced when the price of gas hits $4.00 again?

JOG

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