Are the oil companies charging all that the traffic will bear? No doubt. But they were probably charging all that the traffic would bear when the price of gasoline was half of what it is today.
Even businesses that are losing money are charging all that the traffic will bear. Otherwise they could raise their prices and stop losing money.
Most of the people who are making this claim are charging all that the traffic will bear for their own labor or the use of their own products. Dressing up the plain fact that we all usually prefer more to less in political rhetoric about "gouging" explains nothing. Something that is true all the time cannot explain drastic changes.
Thursday, April 27, 2006
Snippet from Thomas Sowell: