vision2020
Re: Petroprices, journalism and life
- To: <jredpath@iname.com>, "Moscow Vision 2020" <vision2020@moscow.com>
- Subject: Re: Petroprices, journalism and life
- From: Ken Medlin <dev-plan@moscow.com>
- Date: Wed, 17 Feb 99 22:06:51 -0700
- Resent-Date: Wed, 17 Feb 1999 22:03:13 -0800 (PST)
- Resent-From: vision2020@moscow.com
- Resent-Message-ID: <"JycFfD.A.W1.M06y2"@whale.fsr.net>
- Resent-Sender: vision2020-request@moscow.com
> simple laws of supply and demand
Inquiries made of four wholesalers-jobbers, seven retail outlets, one
tanker-supply company and one better business bureau serving the Inland
Northwest during a one-week period produced ZERO information to
interested consumers. If truly only "supply and demand" factors determine
the prices paid in this urban area, these enterprises need not have
refused to indicate the competition they face and the real prices they
must pay to move their products in an open, uncontrolled market. The
unusually high "captive" student popoulations here (some 30,000) are not
mobile enough to break the price fix by driving 30 or more miles in any
direction to fuel their vehicles at 20% lower prices (.95 in Lewiston).
Most average wage earners can't either, and so they are also "stuck".
Affluent persons need not bother. But if the average Palouse vehicle
covers 10K per year the difference in savings is close to $l50-200 -- not
insignificant for a family of 4 or five members. But beyond the dollars
and cents, it's the principle of fairness and, in the case of discounts
foregone, a matter of "who is benefiting" from the 25-30% drop in crude
prices since July l998. In the vast majority of communities across the
country, including WA and southern ID, enterprises have passed the
discounts along to their consumers. What changes in basic economics,
demand and supply over the past month have caused a 15 c. drop in pump
prices here? That is truly both an economic and a moral issue, plus the
revolting spectre of greed which is deplorable. Consider the living costs
facing a new young school teacher earning $19-20K a year.
You do make some interesting points about trade-offs that those who
choose to live in this high-quality environment ought to be willing to
absorb for the privilege. But the "sacrifices" ought not to be of that
contrived character. At the same time, there are other similar
communities in the NW and Northcentral US (Great Lakes) which compare
very favorably with this area but unscared by such unfair practices.
Firms, and their consumers, who depend on service vehicles for business
must increase their prices, etc. Food and cloting prices, however, are in
line with those in all towns and cities in the region, perhaps because
their shippers pay lower prices at points of departure and aren't
required to "fill up" here?
Many people, who can easily afford it, would not mind paying higher
fuel prices if the "excess profits" went ot environmental, highway or
perhaps health services beneficial to all citizens, not just to a small
group. West Europe's fuel prices are 4 X ours, but their average incomes
are 2-3 times ours, engine capacities smaller, and their urban
congestion greater -- requiring more enviornmental controls. Let's have
more fair-mindedness, gentler attitudes and community spirit in
approaching these controversial matters!
------------------------
William K. Medlin
Dev-plan associates
930 Kenneth Street
Moscow ID 83843
208/892-0148
dev-plan@moscow.com
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