That’s their whole fucking strategy. Endlessly…
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If gas prices drop suddenly and a station is forced to lower prices to sell the gas they already have in their tanks because a bigger station across the street or nearby emptied their tanks sooner and can sell the less expensive gas sooner, of course it hurts a mom and pop who is selling their gas at very low margins to begin with.
They can either lower their prices to compete, losing money on the gas in order to keep the sales coming in for the store items or keep the gas price higher so as not to lose money on the gas they already bought causing them to lose money on the store items because people will go for the cheaper gas and not stop at two different places for gas and milk.
Fox wasn’t wrong about the mom and pops but they didn’t go into that detail they just wanted to blame Biden for something else.
They could have gone into detail about how gas prices work and how the market being so volatile or controlled by speculators only hurts small business. But then they would be forced to explain that a president can’t or never has controlled gas prices.
In other news, the food is terrible and the portions are too small.
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No - that’s not it. Gas prices dropping for small operators means their costs have gone down and they have more room for pricing aggressively.
See “sticky prices” in economics and look at the history of what happens when gas prices have fallen historically.
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Switching to the topic of gas prices falling fast: I have no dog in this fight, but I agree. Gas prices dropping fast help most market players, especially the smaller ones who don’t have the clout to control larger market prices. ETA: when you phrase your disagreement this way, I see your point about fox overgeneralizing the downsides of rapidly falling prices.
We agree that Fox was completely wrong then.
Though it helps most market players except consumers. Prices being sticky in the downward direction, that is.
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They were more honest when they were called Pravda.
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My dad also had a gas station, but he left that life in the early 70s before it got worse. He worked the Sears auto center doing wheel alignments until I left for the military.
And I have the same memories about the old-school Coke machine. I’d usually get a Yoo-Hoo.
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I wouldn’t be surprised to hear some might even sell it below or at cost as a loss-leader.
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One has to be willfully obtuse to start from the proposition that Fox is anything other than a right-wing propaganda outlet.
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