Tuesday, March 13, 2012

Vicious Circle

President Obam's Whitehouse recently posted this image:
To which I reply:

You mean the same subsidies that companies like the NY Times and Apple get? Oil companies make huge profits because they sell a lot of product, period, no great mystery. As a matter of fact the oil industry makes just 7% profit whereas many industries (computers/appliance/beverage manufactures to name a few) earn 12 to 22%. The various levels of government make at least 13% off of the price of a gallon of gas. If we gave oil the tax breaks and subsidies that wind energy received oil would only be $50/barrel. The oil and gas companies pay a higher tax rate then nearly every other industry, about 41% effective rate compared to S&P average of 26% (Apple was 25% last year and Obama want's to reduce their rates). (I thought we were all for fairness or is that just a buzz word I keep hearing that doesn't mean what it used to?)

Oh, and where does that 7% "Big Oil" worked to make go? Into the evil hands of retired folks, pension funds worldwide, mutual funds, business owners, oil employees, gas station owners, etc. (all of which is taxed again helping the government take even more oil money). It isn't like it is just sitting there in the company treasure.

In a world that wasn't topsey turvey and rife with envy and politics we would be thanking them for working to provide us with the resources we need to function in our modern society! There is almost nothing you do in a day that is not dependent upon that worker and company that made the dangerous effort to risk their life and money to provide these products. But that isn't our world any longer. We would rather find someone to demonize making it more difficult and expensive for you to do every daily activity in your life.

When you have an administration that believes that resources and human potential are limited you will inevitably end up with limited opportunity and resources/higher prices.
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