Finance: Oil prices

In March 2012, the price of a litter of super gasoline in Germany rising to record levels. The insatiable oil companies are guilty, right.Just in time for Easter this year, the price of a litter of premium gasoline has cracked the mark of 1.70 euros.

imageThe culprit was quickly found: The oil companies, which before Easter use the rigid demand in their favour. If you look closely, however, a different picture arises.Gasoline prices follow closely to the development of crude oil prices.

It rose at the same time also to a peak of 95 euros per barrel. The observation is consistent with the experience in the world economic crisis in 2008.However, in the recent rise is added another effect and it is that oil is mostly paid in dollars. If the dollar rises against the euro, the import of oil, we will get the more expensive gasoline. The reverse is also decreases the dollar, as the price of oil drops.

imageThus, the euro crisis has led to slightly rising gasoline prices.The oil companies, therefore, provide only the raw material cost increases to its customers. Most paid at gasoline from the state anyway. At a price of for example 1.63, which corresponds to the average price in July. The dreaded 2-euro mark is not exceeded. This would require the price of oil to rise to 175 euros per barrel. This brand is only cracked when it due to the unrest there, comes shortly to supply disruptions in the producing countries.

The economic theory of bureaucracy

The GEZ is rebuilt. Instead of taming the monster bureaucracy, will be added in addition to new powers and new staff. Although the workload for the GEZ reduced, the administration will continue to inflate. It would also be easier. Who was no friend of the GEZ already been, there is now an additional reason to be indignant over the public administration community.

The impetus provided by the new radio talk treaty. From January 2013 every German household is charged a flat rate, no matter whether this be in ten or a single radio broadcast receivers.More staff for less work, it acting badly as an occupational therapy.

imageIn addition, is an almost textbook example of the economic theory of bureaucracy? That says government institutions become ends in themselves and tend to uncontrolled growth. Moreover,that is usually expensive: 2011 cost of the administrative apparatus GEZ fee payers Euro 163 million, due to the change, this sum is expected to grow even more.