Greedy going up, and greedy going down

If you haven’t noticed, oil and gas prices have dropped significantly from their September highs. If you’ve been listening to anti-capitalists, you might wonder: “How is that possible?”

How is it possible that with so much rampant greed in the oil industry, the price could actually go down? Why would gas stations or oil companies lower prices? The short answer: they’re greedy.

That’s right. Greed has actually caused people to reduce prices. It sounds absurd, but think about it. With such "high" prices, anyone who sees fit to lower prices, will gain market share. The world will beat a path to their door. Greedy oil companies are lowering prices, trying to steal customers away from each other - and it’s working.

Well why didn’t this happen earlier? Good question. The answer: it did. Any time someone lowers prices too much, hoards of people line-up to buy that product, until supplies run out - leaving many people wanting. Think of the gas lines of the 1970's. Think of the odd and even days of yesteryear (where the last digit of your license plate determined on which day you could buy gas). Of course oil companies don’t go that far. They lower prices just enough to steal customers away, without letting supplies run out. Running out of supplies is bad - for everyone. Companies try to avoid it when their not prevented by law. You don’t always realize they’re reducing their prices because the supply of oil isn’t always the same - and the demand for it varies too. “just enough to steal customers away, without letting supplies run out” means something different every day.

The end result is that customers benefit because oil companies are greedy.

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