Actually, that's a hoax. Check it out here: http://www.snopes.com/politics/gasoline/nogas.asp

http://www.snopes.com/politics/gasoline/nogas.asp

Dear Andrea,

I hate to be boring and talk about economics, but in a market economy, we actually should be happy to see companies that produce something useful (and there is not much that it more useful than gasoline) make profits. And pretty much, the more the better. This is not just because the shareholders and employees get better pay and returns. It is because, if the profits reflect a situation of a lot of demand chasing inadequate supply (like now for oil & gas), higher profits will encourage more production and exploration. If the existing firms try to hold back production to keep prices high, then the high profits of in the industry will attract other competitors, new supplies, and, eventually, lower prices (but this also depends upon demand). The absolute worst-case would be a situation--something like that envisioned in Katie's scenario--where we have high prices because of tight supply/demand but low profits. (This is usually the result of government price controls and/or taxes, usually resulting from misguided politics.) Low profits would guarantee that the situation is never corrected by normal market forces.

Sorry for the economics lesson.

Love,

Daddy

Whoah!

Who knew, I needed lessons in both hoaxes and in economics!!

Thanks guys,
Andrea