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Saturday, April 29, 2006

Oils Well that End Swell

In a categorically unsurprising manner, [p]Resident Bush Rejects Tax on Oil Companies' Profits.
President Bush on Friday rejected calls by some lawmakers for a tax on oil company windfall profits, saying the industry should reinvest its recent gains into finding and producing more energy.

"The temptation in Washington is to tax everything," Bush said in an exchange with reporters in the White House Rose Garden. "The answer is for there to be strong reinvestment to make this country more secure from an energy perspective."

With gasoline at over $3 a gallon in some areas, Bush said there was "no evidence" of price-gouging of consumers.
Price-gouging? Why would ANYONE think that? Could it be because the petroleum industry is reporting not only record earnings but records profits?

Basic economics dictates that, if the wholesale price goes up, then the cost of the product will rise too. Basic economics also informs us that, if a company maintains its market share, then rising prices will mean higher earnings.

However, in a situation such as this, higher earnings don't USUALLY mean higher profits. To be sure, you are bringing in more dollars BUT you concurrently are incurring more costs to produce your product.

OBVIOUSLY, the oil industry isn't being completely honest. It's readily apparent that they're charging more than the increased cost. Just like the Robber Barons of old! (Sort of brings sentimental tears to your eyes, doesn't it?)

7 comments:

  1. Could it be that Trey is not being honest? Could the reality be that Trey is a socialist? Could it be that Trey hates Capitalism?

    I'd like to see gas to to $10 / gallon, then maybe all those lazy people with gas mowers and blowers will switch to electic!

    OBVIOUSLY, the claims from liberal-socialst that Bush has such strong ties to the oil companies must not be true, else this would be a great time to appear like some saviour and drop prices really cheap.

    OBVIOUSLY, the claims from liberal-socialst that Bush went to war in Iraq just for the oil wasn't true afterall - seeing their claims never materialized.

    Time to come clean with the American people Trey! Stop hiding behind Taoism and just come out of the closet. Place it boldly below your title that you are a socialist.

    Yet, he continues to hide...

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  2. euhm, isn't it quite obvious that taoism and capitalism are opposites? If you can convince me of a theory that combines a return to nature with the need to earn and spend all your money, go ahead :)

    Here in Belgium, we pay about 70% taxes on gas, explain that. Yes, your war in Iraq is THE main reason why prices went up about 57% in 2 years. Why should I pay for something you Americans started? And don't come with excuses like: we rescued your country twice in the 20th century. If it wasn't for Europeans, there wouldn't be an America...

    I get so angry with people who refuse to see the global impact of the Bush government. I don't care about your war, if your tax money is being wasted or not. I just want a future for me, my family and all the people I care about, so that includes Trey. His adversery against Bush directly implies to my future as well!
    This might sound very selfish and it is, I'm fully aware of that. But hey, I can't care for the entire world, can I?

    But go on, piss off nuclear nations, refuse to learn from the past and drag everyone down in your sorrow. Thumbs up!

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  3. JustaDog,
    Unlike you -- a closet fascist -- I have never hidden the fact that I'm a Green AND a socialist. In fact, I'm quite proud to be both. And Bert is right -- taoism and capitalism are complete opposites, so, stating that I am a Taoist should tell anyone I'm not a fan of capitalism.

    As Greg Palast points out, the results we're seeing from the War in Iraq are EXACTLY what Bush wanted. It wasn't about getting control of more oil to sell it; it was about getting CONTROL of oil and then LIMITING the amount available to consumers. More than any other industry (save for the military-industrial complex), the oil industry has profited most from over 2,000 dead US service men and women and tens of thousands of Iraqi deaths and casualties. In other words, it's blood money.

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  4. A recent WaPo news article detailed how the natural gas companies are now joining the party, intentionally keeping supplies offline so that they can run up the price. Surprised? Hardly. The corrupt price-manipulating Enron was, after all, Bush's chief sponsor through the years.

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  5. First, Trey, glad to see you posting again. I thought your health might be keeping you away. Whew!

    As for Bush and oil, I believe Jon Stewart covered this story the best: Bush on oil

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  6. Just a hi, think about you every day, check your blog, know you're busy and pray for your health...we miss your inspirational words, but appreciate your work in your local government...

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  7. Yes, I'm alive and well. Managing two political parties simply takes a lot of time and leaves little energy for blogging. In addition to these two activities, my wife & I are buying a house in Hoquiam (next to Aberdeen here on the harbor). I hope to get back to more regular blogging by mid-Summer.

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