The second of three debates that I wrote for a business class a few years ago. The purpose of the assignment was to debate a business issue in less 200 words. I hope some Business Administration students will find this helpful.
Debate 2: Should the House Stabilize Gas Prices
Mr. Speaker, we are here today to debate the resolution that the House should stabilize gas prices. As side government, we support this resolution and believe strongly that it must stand.
The laws of supply and demand still determine the price of oil on the world market, and the laws of the free market prevail. The government is powerless to regulate them.
But in much the same way the government harmonizes taxes for initiatives in the public interest, it should regulate – or stabilize – the prices consumers pay for refined petroleum products: gasoline, diesel fuel, motor oil, home heating oil, and the full array of petro-chemicals sold for industrial and manufacturing purposes. Specifically, the government should tie consumer prices to the wholesale price of oil in much the same way home mortgage rates are tied to banks’ prime rate; and it should cap oil companies’ profits at a fixed percentage of the difference between the wholesale price of oil and the retail prices of petroleum products.
Government stabilization of petroleum prices has at least three objectives: first, keeping essential fuels affordable for Canadian consumers; second, eliminating the risk of oil companies’ gouging consumers at the pumps; and, third, gradually weaning the nation of its dependence on imported fossil fuels. Stabilizing consumer prices for petroleum products, the government simultaneously keeps the country moving and generates revenue for sustainable energy projects.
Side government, Mr. Speaker, would like to thank the House for its time and, for the reasons stated, reiterate that we believe strongly this resolution must stand.
Thank you, Mr. Speaker.
Ajuzie, I. S. , & Ike, R. M. (2009). Oil Speculation: The Impact On Prices, Inflation, Interest Rates And The Economy. Journal of Business & Economics Research, 7(10). Retrieved from http://proxy.library.brocku.ca/login?url=/docview/194914223
Mehra, Y. P., & Petersen, J. D. (2005). Oil Prices and Consumer Spending. Economic Quarterly – Federal Reserve Bank of Richmond, 91(3). Retrieved from http://proxy.library.brocku.ca/login?url=/docview/204877310
Risk, H. (2009). Commodity crackdown. Risk, 22(9). Retrieved from http://proxy.library.brocku.ca/login?url=/docview/201339289