In a categorically unsurprising manner, [p]Resident Bush Rejects Tax on Oil Companies' 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?)
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.Price-gouging? Why would ANYONE think that? Could it be because the petroleum industry is reporting not only record earnings but records profits?
"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.
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?)