View Single Post
Old 08-23-2005, 09:23 AM  
jayeff
Confirmed User
 
Join Date: May 2001
Posts: 2,944
Quote:
Originally Posted by SirMoby
There is a higher demand for the product but the margins have gone up much more then supply and demand would warrant.
Actually that is a contradiction in terms, unless of course the theory behind supply-demand economics is all wrong. And unless it reduces demand, it's actually the duty (to their shareholders) of oil companies to push prices/margins as high as they will go.

In any case you might just as well ask why we aren't performing a social service by selling porn on a sub-10% margin (which is all some industries work on). Either all the profit the market will bear is a good thing, or it isn't: you don't get to pick and choose.
jayeff is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote