Posted by Kevin
As we all know, gas prices at the current moment suck. They are high, and no one enjoys paying $60, $80, and sometimes up to $100 dollars at the pump. Therefore gas prices have become a huge issue in this year's presidential election. On NPR, Obama discussed his solution to the rising gas prices. His windfall profit tax on oil companies was his brilliant idea.
He proposed an emergency rebate check to consumers to offset the rise in the price of gas. His basic proposal is to take money from the oil companies, their profits, and redistribute it back to the consumers to buy more gas. Most economists disagree with this sort of proposal saying it will only hurt the oil companies. When asked about that, Obama responded with this remark:
"Classic economic theory says you don't meddle in the markets. Look, I mean, most economists buy into that approach. Exxon Mobil made $12 billion last quarter. They made $11 billion before that, and $11 billion before that, and not all of this is going into research and development — and families need some relief."
Is he actually suggesting that most economists are wrong?
So because these companies are so successful at selling gas, and because gas is in such high demand, its the government's duty to take away their money, and relieve the market? I don't quite see how a company that has a modest 10% profit margin deserves to have money taken away from them. Why is this windfall profit tax only being applied to oil companies? Credit card companies have a profit margin as high as 40%. Why isn't Obama looking into taking money away from credit card companies to help Americans in debt? This whole plan doesn't even seem logical, and I for one am not buying into it.
The whole article can be seen at NPR.org
5 comments:
Nail on the head, Kevin. The thing about democrats is that they too understand the economic reality as you and I do. They are craven when they lie to dumb Americans, telling them that the stock-holders in oil companies are reaping huge profits. They aren't. Half of American voters want to blame somebody for their troubles, and Obama knows the oil companies are easy targets. He's just flat out lieing, and the MSM let him get away with it becuase they are in the tank for him.
Keep after him K. Nice job.
Profits are just profits. What are their profit margins? If you compare their margins to the margins "earned" by the federal and state governments through taxes, the latter are the ones with the "windfall" profits. And all for doing nothing...literally and figuratively.
Voters should be educated and pay taxes. It really needs to be a requirement. The majority of people voting this year here rebate checks and lower gas prices, and fail to see the ramifications of their decisions. I don't think a voting test would be all that terrible.
Buying lottery tickets should be instant disqualification.
I'm no economy expert, nor am I a future teller, but I foresee some major economy problems if Obama happens upon election.
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