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Subject: 
Re: Rolling Blackouts
Newsgroups: 
lugnet.off-topic.debate
Date: 
Thu, 10 May 2001 13:08:15 GMT
Viewed: 
433 times
  
In lugnet.off-topic.debate, Mark Papenfuss writes:
In lugnet.off-topic.debate, James Simpson writes:
I heard an economic analyst on NPR sum up the California energy crisis with • this
analogy:

You own a McDonalds.  The production costs of a Big Mac has risen to $6 each,
but you are forced by the government to stay in business and sell them for $2
each.

james

HA! I can not see how the price for producing has risin, if they are doing
what they have been doing, why would it go up???...
If the cost of producing a big mac goes up
to $6, but the cost for the parts of a big mac have not gone up, how did it
become $6 to make a big mac?

In this particular hypothetical California McDonalds, I would guess that they
had to invest in power infrastructure so that they could keep the grills hot
even when the grid isn't active.  That kind of UPS/diesel generation system
isn't exactly cheap.

And if the price has gone up, and they are
doing the same thing they always did, thats not our fault, its poor managment.

Or maybe the government just raised minimum wage, so operating the McDonalds
costs more and further, the bone-head lowerclass teenagers who work there have
an even stronger sense of entitlement and know that they don't really have to
get you your Big Mac efficiently, so it requires more of them to do so.

There are lots of reasons that the price of fossil fuels is high.  I'm just
wondering if the price is high enough.  This is one where I take the liberal
road of wondering if we aren't gyping our kids by not paying for our share.

Chris



Message is in Reply To:
  Re: Rolling Blackouts
 
(...) HA! I can not see how the price for producing has risin, if they are doing what they have been doing, why would it go up??? No new plants are up, none are going up - so whats changed? If the cost of producing a big mac goes up to $6, but the (...) (23 years ago, 10-May-01, to lugnet.off-topic.debate)

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