When Capitalism becomes Co-Cospiracy
Tuesday, April 7th, 2009 at 9:34 pm. (242 views)Capitalism is a beautiful concept. In fact it is the greatest method of doing business ever thought up. In the past …when we lived in a somewhat honest society the free market was the way to go. Unfortunately we have lost those days and that society forever.
Company A produces a barrel of oil sale at $18.00
They base their sale price on cost and profit.
Company B produces a barrel of oil sale at $19.00
They base their sale price on cost and profit.
Company C produces a barrel of oil sale at $20.00
They base their sale price on cost and profit.
Each of these companies keep each other in check because they cause each other to stay competitive to keep their market share.
Here’s where Capitalism ultimately fails.
Company C decides for some reason that they would like to make $22.00 for their barrel of oil. They call a meeting with Company A and B and somehow convince them to raise the price of their barrels of oil by $2.00 also. They all figure that people have to buy their oil from one of us so why not. We make more money for no more work and we keep our market share.
For this reason Capitalism can and will ultimately fail.
If Company A looses an oil well in the Gulf of Mexico because of a Hurricane and raises their prices why is it that Company B and Company C raises their prices when their companies suffered no loss?
OLD STYLE: When you have a product that is in high demand.. To keep up with demand you step up production and your profits increase because you are selling more of that product.
NEW STYLE: When you have a product that is in demand … you raise the price of that product so that your profits increase without increasing production because you want a higher profit without the cost associated with stepping up production.
Greed will destroy us all…..
It’s time for a revolution…
(This vent has no vote question)
April 8th, 2009 at 5:32 pm
YES,THAT IS THE MOST INTELLIGENT IDEA ANYONE HAS POSTED RECENTLY,REVOLT-TAKE BACK THE COUNTRY,READ THE BILL OF RIGHTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
April 9th, 2009 at 8:54 pm
true that but if there was a revolution they would call it terrorism, sounds like we would just be martyr’s, to make people more scared to attempt any kind of reaction as such GOTTA LOVE LIVING IN A FREE COUNTRY AYE..
April 11th, 2009 at 1:51 pm
Your argument is simplistic as well as full of holes. There is no such collusion between the oil companies as to price fixing. Oil is a commodity that is traded on world wide markets and the CEOs of Exxon Mobil, Texaco and British Petroleum don’t have that much control over the price of their product as you assert. It is simple supply and demand. The more of a product that is on the market, the cheaper that product is on the retail end. Conversely, if there is very little of that product, and the demand is high, it is more expensive.
The United States has the highest standard of living of any country on the face of the planet because of capitalism and the free market system. It is the power hungry polititians that are bringing the country down, and now we actually have a socialist as President, as well a most of congress. Am I the only one who remembers the Jimmy Carter years?
April 16th, 2009 at 1:11 am
What’s really amazing about Obama is that this country was running at the peakof efficiency, the sky was blue and we all lived and sung together like people on the Saturn commercials……UNTIL the day he took over. He has managed to single handily destroy this country economically in less than 100 days in office.Where is Bush when we need him. I should become a Republican… then I wouldn’t have to think for myself. I could just listen to Rush..