Thursday, October 13, 2005

The Answer is in Plastic

There is price gouging and the proof is in plastic.

Has anyone but me ever wondered why prices of gas are skyrocketing while the prices on plastic goods made in this country and around the world have literally stayed the same? The truth is that plastic products are made from petroleum, the same petroleum you use in your vehicle every day. Go to your local department store and see for yourself. Plastic toys, televisions, computers and other things made with plastic have not gone up at all. Go down to your local car dealership and look at the prices for an automobile. I will guess that plastic makes up about 30 percent to 40 percent on a new vehicle, yet the prices have stayed pretty much level in price.

If there are oil shortages, than how come the price of plastic hasn't increased at all?


  1. Because demand for oil is less elastic than demand for plastic in the short run.

    Oil companies can charge whatever they like, and you're free to not buy what they're selling. High prices only hasten the world's search for alternatives to petroleum, and encourage conservation now. Sounds like a good thing to me.

  2. Yes it is a good thing that high prices are encouraging conservation and alternate fuel, but the damn prices are hurting my budget! lol