Linguofreak
Well-known member
All this BS about sticking it to the "greedy oil companies".
Those oil companies aren't holding back technology in order to make money;
This I agree with. I suppose you could have some kind of cartel system where the companies agreed to certain measures to keep gas prices high (such as holding back tech), but the kind of greed that leads to such agreements also tends to destroy them.
My beef with the oil companies is not so much any big theory of some massive conspiracy, but more that they, acting individually out of selfishness, are being slow about reacting to increases in oil prices, simply because at the moment it allows them to make better profits. Eventually, of course, oil will reach prices high enough that consumers are no longer willing to foot the bill for gas, and the oil companies' profits will drop, and *then* they will start trying to bring oil prices down.
if such a magic substitute for oil existed they would all be racing each other to see who could market it first. Not only would it make them a huge pile of money, it would also improve their poor public image, which is propagated by people whining about them "making profits", which is, of course, what they are in business to do after all.
The problem comes when they make a profit at the expense of others. A healthy economy is one where most transactions are strongly win-win. If people become too willing to screw each other over just to make a few more bucks, any economy will eventually sink. I think that Americans, and Westerners in general are becoming too used to the easy life and too willing to screw each other over to find the easier life. Part of where this shows up is in the way the oil companies are acting now, but it's a problem that extends farther than that. And of course, it's not just a Western problem either. The Middle East is perfectly willing to screw us over to make a buck, crude production in general is declining, and China and India are coming into the market and creating more demand.
You may think that oil is more expensive, but in fact it is not. Your money is just worth a lot less, mainly because it's completely fake and is not backed by anything. A pound of silver today buys about the same amount of gasoline as a pound of silver did 40 years ago, but because of inflated fiat currency that pound of silver, and the gasoline you can trade for it, cost a lot more.
True and false. Yes, the dollar has inflated. But oil is still more expensive in inflation-adjusted terms than it has been in the past. Rising demand + wavering supply + tensions in the area that produces the supply + greed all around = a greater percentage of your paycheck (whether you measure that in 1968 dollars or 2008 dollars) goes into gas.
I also wouldn't say that fiat currency is backed by nothing. It is (more or less) backed by the economy of the issuing nation. The problem comes when that economy isn't worth what you think it is, which is why I don't like the credit-happyiess of the American consumer, (or the deficit-spending happiness that comes from Congress engaging in Democratic spending and Republican taxation), since willy-nilly credit has a way of creating false wealth.
Silver (or gold, or oil, or cow) backed currency doesn't really help here, because the supply or demand for the backing commodity can change and the government can always lie about how much of the backing commodity it has (or if you're actually making silver coins, it can cut the coins with other materials). Commodity-backed and fiat currency are essentially the same in that you are taking something and using it to represent the value of your economy. If the supply of the currency rises (whether it's gold becoming more plentiful on account of a gold rush or whether the government is printing more dollars), or if the value of the economy shrinks, prices rise, because it takes more of the currency to represent a given segment of the economy.
The only way to get out of this representationalism is to go back to barter.