Comments on: Government gas cartel enforced… After taxes! http://www.enigmacurry.com/2005/06/03/government-gas-cartel-enforced-after-taxes/ The Curry Enigma Wed, 07 Jan 2009 12:30:51 +0000 http://wordpress.org/?v=2.6.1 By: ryan http://www.enigmacurry.com/2005/06/03/government-gas-cartel-enforced-after-taxes/#comment-5 ryan Tue, 23 Aug 2005 21:52:43 +0000 http://www.enigmacurry.com/?p=14#comment-5 Certainly private contracts should be allowed, including whatever terms and conditions the two parties voluntarily decide upon. The only problem is that the government is in fact a third party to this whole situation. The gas station is not purchasing gas from the central government, it's buying it from offshore gas producers. The Gas station and the producer should be the only ones who can have a say in the terms of the agreement. Then again, if this were the case (a private contract between gas station and producer).. They wouldn't really be buying gas now would they? It would be licencing gas. For raw materials, where there is little innovation and product distinction, I highly doubt that such an agreement would naturally occur without government involvment. Certainly private contracts should be allowed, including whatever terms and conditions the two parties voluntarily decide upon. The only problem is that the government is in fact a third party to this whole situation. The gas station is not purchasing gas from the central government, it's buying it from offshore gas producers. The Gas station and the producer should be the only ones who can have a say in the terms of the agreement.

Then again, if this were the case (a private contract between gas station and producer).. They wouldn't really be buying gas now would they? It would be licencing gas. For raw materials, where there is little innovation and product distinction, I highly doubt that such an agreement would naturally occur without government involvment.

]]> By: Gandhi http://www.enigmacurry.com/2005/06/03/government-gas-cartel-enforced-after-taxes/#comment-4 Gandhi Tue, 23 Aug 2005 21:51:11 +0000 http://www.enigmacurry.com/?p=14#comment-4 The largest factor in this being an issue is that one of the parties involved is the federal government, utilizing its power to create laws. If this were a private producer of oil, I think this would be a perfectly valid scenario. If Chevron buys its gas from the provider, why can't that party create a contract where one of the terms of the purchase is that the product can't be sold for less than a certain price? This seems like a valid concern for somebody when selling goods, that they don't want their consumer to become a competitor. If the price cut is valuable enough, most consumers would probably be willing to agree to this term. The largest factor in this being an issue is that one of the parties involved is the federal government, utilizing its power to create laws. If this were a private producer of oil, I think this would be a perfectly valid scenario. If Chevron buys its gas from the provider, why can't that party create a contract where one of the terms of the purchase is that the product can't be sold for less than a certain price? This seems like a valid concern for somebody when selling goods, that they don't want their consumer to become a competitor. If the price cut is valuable enough, most consumers would probably be willing to agree to this term.

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