Would a Cap on Fuel Prices help or hurt our Economy?

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6angster

Please Explain in your answer Why You Think It will Help or Hurt our Economy.Thank You for answering

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DUDE:

Since the price of oil is set up on international supply and demand, someone would have to pay the difference to the oil producers and the US oil companies would not do it. That would simply mean that the oil producers would sell oil to Europe, China and India who would pay their price per barrel. This would probably lead to gas rationing in the US.

othman:

Since such a law would be at the consumer level, I think the person most hurt would be the gas station that already makes nearly nothing off of gasoline. They would be required by law to charge a certain amount, but no such requirement would be put on what they paid. Bye Bye Mom and Pop. (or even larger local chains)

6angster:

Hello Mister GZ Yes we have had gas rationing before -long waits at the gas stations and I agree the US oil companies would not pay the differencel Thanks for answering:)

Doctor Woot:

If we are to help our country, we must change our habits, as fuel prices rise we will be forced to change. To seek other fuels will not be cheap but we have not demanded it yet. Food and other things we need to live will also rise, however this to will push us to force the powers that run our company's to give things that we need at prices we can afford.

6angster:

Hi m60a3 I guess we will all have to adjust Thanks for answering:

othman:

Hurt.
The oil company will not feel the cap, the local gas station would. Your local gas station makes almost nothing off of gasoline, they hope you come in to buy a $1.99 Twix.

6angster:

Hello Jonny The Muffin Man I am sure that the oil company will not feel the cap too.Thanks for answering:)

othman:

You're welcome. I worked for a gas station for a while, I hope what I learned has helped you.

6angster:

Thank you for bringing that too my attention It is something to think about:)

Alabama:

It would hurt. If the government puts a cap on the price, the oil companies will put a cap on production. This will lead to shortages and long lines and the price will then go up anyway. We have to wean ourselves off the gas tit. In Brazil, the people grow sugar cane and corn to fuel vehicles and they burn the product in American made cars. Why can't we?

6angster:

Hello Wonderer Thank you for your opinion it is a lot to think about and Thanks for answering:)

Ed:

Definitely hurt....anything that reduces the market's ability to function is bad for the economy. If oil prices in the US were capped, then the oil would go elsewhere. Without power, factories would have to close. With people layed off, they would do less shopping so more businesses would have to close.

6angster:

HI Ed Thank You for your answer:)

Porkenstein AKA Pork, Porky, Porkens:

The effects on an economy by price floors or ceilings is well documented. If you need an example look at the poor quality and scarcity of housing in rent controlled markets. Landlords have no incentive to spend money on the property or build new property.
Price caps pretty much always cause scarcity (long gas lines, rationing) and black markets to form (gouging of consumers).