Filed under: business | Tags: diesel prices, gas prices, government subsidies, oil
As the price of oil continues to rise so does the price of gas. It seems to be what we hear about most when it comes to oil. But, that is only a small part of a much bigger picture. The larger concern is that the price of diesel is also rising. Should we be concerned? And, if so, why?
The simple answer is, of course we should be concerned. Diesel is the lifeblood of most commercial businesses. From the trucks that deliver your food to the supermarkets to the aircraft that delivers you to your destination, the higher diesel prices are squeezing the profit margins of these businesses. The larger concern, however, seems to be for small business.
“I’m in debt,” says Jim Gossett, an owner/operator truck driver with a wife and daughter in Chapel Hill, N.C. “Do I turn in all my equipment, potentially lose my home?”
For the last nine years Gossett has driven a truck. For the last few he’s been running a specialized carrier, delivering boats to marinas and dealers across the country.
He says his profit margin used to be around 25%. But with the near-tripling of diesel prices over the last few years, he now says that has been cut to 5%.
He says cutthroat competition in the industry means he’s unable to pass along the increased cost.
I applaud Mr. Gossett for running his own business and I do empathize with his plight. That does not mean that I think the government should intervene in any way. In the United States one has the opportunity to do as much, and go as far, as he likes. That does not mean that one is entitled to be successful. Do you understand what I am saying here? One is given the opportunity to be successful but is in no way guaranteed that success. Success comes from being more innovative or having more value-added services available to one’s customers. Those that cannot meet the public demand for a product or service at a particular price are in the wrong line of business. It really is as simple as that.
Government meddling in business only creates artificially higher prices. When a government subsidizes an individual it only succeeds in telling them that they do not have to be innovative and they don’t have to run a tighter ship. No; instead all they have to do is continue running their business inefficiently and the government will make sure they are profitable. How is that right? Why should I be forced to pay more for the things I need or want just because someone might have to do something else for a living?
At the end of the day the opportunities are there. The problem is that individuals have this feeling of entitlement to do what they want, where they want, whether or not it is feasible. People need to get over this feeling of entitlement and do what they have to in order to be successful in life. If Plan A doesn’t work then move onto Plan B. What, you have no Plan B? Then you have only yourself to blame. Do not become so rigidly attached to an idea that it keeps you from doing anything else because at that point you have set yourself up as a victim by choice. The problem with these victims is that they expect the government to do for them. It’s my money you are expecting the government to give you and I have a big problem with that. Once again, the opportunities are there. You just have to be willing to accept the fact that what you have been doing is no longer working and it’s time to move on.
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