What’s Up With That?

I don’t do Twitter, FaceBook, Instagram, or any other social media. The screenshot above came from a news article. In addition, I normally don’t care to write about political issues. But I have to <rant> about this!

For many of us with RVs, the current high price of gas is a concern. I’m not happy about the current $6.30 per gallon price in California either.

What is the President suggesting? Is he saying gas stations should sell gas at cost? Why is China, a communist country, praising him? Doe Joe want our government to nationalize the industry, like China (China National Petroleum Corporation)?

Apparently Joe’s tweet generated support from Chinese state media official Chen Weihua who praised Biden for finally realizing “that capitalism is all about exploitation,” Fox Business reported.

What is really happening with gas prices

A few days ago I shared a post about gas prices, 2022 Camping and the High Price of Gas, where I explained why gas is so expense today. I also explained “fixed expenses” and how a business, such as the corner gas station sets prices. In fact, my example was a gas station!!

Joe is confused or doesn’t understand how a market economy works

Plus, he states in his Tweet,  “. . .  the companies running gas stations. . .”

This sounds ominous — you know, evil corporations. Here’s a fact from the American Petroleum Institute:

The vast majority of branded stations are owned and operated by independent retailers licensed to represent that brand. According to the National Association of Convenience Stores (NACS), more than 60% of the retail stations in the US are owned by an individual or family that owns a single store. [bold mine]

Oops, seems gas stations in the US are mostly family run small businesses.

Something else to add. . .

Back in 1973 I managed a gas station. At the time we had only three licenses/permits

• State Resale License (to collect sales tax and forward the money to the state)
• City Business License
• County permit to Operate an Air Compressor.

That was it. Pretty simple.

Fast forward to 1998. . .

Twenty-five years later our gas station had 48 city, county, state, and federal licenses or permits. And of course, each came with a price — a yearly fee. This isn’t a typo, we had FORTY-EIGHT licenses/permits. And this was almost 25 years ago when I got out of the business. I shudder to think how much more government interference this is.

These fees are fixed expenses that have to be paid. Not to mention that these licenses/permits require business to change how they do business, spend money to meet regulations and often hire extra people to please government bureaucrats.

Does Joe understand this? Apparently not. Like most politicians he would like to make it harder for large and small businesses to succeed.

Joe isn’t the sharpest tool in the shed

Joe is a career politician, not a businessman. He isn’t that smart either, having graduated from Syracuse University College of Law ranked 76th out of 85. US News & World Report ranks his college #103 in Best Law Schools, and Joe was near the very bottom. Joe isn’t Harvard or Yale material.

As far as I can find, Joe has never owned or run a business. My guess is, that if he were to buy a 7-11, he would probably go broke in 6 months. So why is he offering business advice?

Maybe Joe needs to go back to school and take Econ 101. Or perhaps he does agree with Chen Weihua.

</rant>