I thought I would provide some weekend entertainment here since there is little to write about in the markets. I believe the stock market is fairly valued, however there are limited value opportunities out there but you must turn over enough rocks.
Anyway... Every summer the price of gasoline rises and the complaints over gasoline prices begin to appear almost everywhere. The victim mentality is common in our society. Well, three years ago I read one such victim complaining in the editorial section of a local newspaper. I instantly went to my computer and typed up my response. This was my first letter to the editor.
I would note that this letter was very pointed to drive home the point. For many people this message will not sit well because it challenges a number of beliefs. So next time you hear someone complaining about gasoline prices, here is some ammunition. If this does not sit well with you I would like to know why and what you consider to be false.
(Please note I removed the name and location to protect the individual I was responding to.)
Dear Mr. Rodger _________.
If you would like to see the person responsible for setting the gas prices, please go look in the mirror. Nobody forces you or your neighbors to purchase gasoline at any price. Nobody forces you to drive a vehicle. In fact, if you feel that they are making obscene profits you have the economic liberty to open your own gas station and to drive down the prices.
The simple truth is our free market system works quite well at setting prices. The company that best meets the needs of the customer gets the sale. We ourselves collectively vote on prices every day in what we choose to purchase. The companies that charge excessive prices for goods will lose business through competition until the market reaches a fair price.
I find it utterly ridiculous when people blame “greedy” oil companies for high fuel prices. A few years ago the price of gasoline was much higher than it is now. I haven’t seen any letters to the editor thanking “generous” oil companies who have now dropped the price to the current level. Perhaps this will be the first.
Have a great summer!