Ignore economics to your own peril.....

Oregon has it RIGHT on Cannabis but Totally Wrong on Gas Stations

Traveling around Oregon this week I've come to learn that it's not safe to pump my own gasoline. As least that's the story here in Oregon. Of all 50 states, only New Jersey and Oregon do not allow motorists to pump their own gasoline.

Another argument offered for the absurd policy of prohibiting motorists is that is creates jobs. As I have driven around the state, it is very noticeable that Oregon has fewer gas stations than Oklahoma. I thought I would look at the comparison of the two states to see how they compare.

Oklahoma and Oregon have similar population. Oklahoma has roughly 100,000 fewer people. According to the Bureau of Labor Statistics, in the third quarter of 2015, Oklahoma had 1,804 gas stations. Oregon had 931. That's nearly twice the number of gas stations in Oregon.

The disaster of this policy doesn't stop there. In terms of number of employees, the September 2015 report showed that Oklahoma  employees nearly 6,400 more employees at gas stations than Oregon. Wages? It's not even close, Oklahoma paid almost twice the amount of Oregon. On a per capita basis, Oklahoma paid an average of $456 per week against $372 for Oregon.

In fairness, Oklahoma is a transportation hub for trucking  companies but still, it's not like Oregon doesn't have trucks on their roadways. They do. Many of them.

What is going on is that the economic model breaks down quite rapidly when the law requires that someone other than the person buying the gasoline pump it. Think about it. If there's a large pad of gas pumps, it requires one employee to dispense the fuel for up to eight pumps. Meanwhile, someone has to work inside the store taking money. It drives up the payroll costs and frankly, let's be honest here, pumping gas isn't even worth the minimum wage because it's something most consumers do for free. It's a dumb policy.

In the end, the policy in Oregon harms more than it helps. The policy results in fewer stations, fewer employees, and lower wages. The people of Oregon are too smart to continue this nonsense. New Jersey voters on the other hand are another story. Sometimes policy inertia for the status quo against change is over the top. It doesn't have to be that way. Just change the policy and move forward.

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