Economics 101 and those EVIL OIL Companies

So, B. Hussein Obama, the messianic, desires to give to every American, “when he says every, he means those Americans riding in the cart, instead of pulling it” a $1000.00 rebate to help offset the high prices of energy. To pay for this government largess he plans to pick the pockets of Evil big oil. I wish these democrats would pick an enemy and stay with them. Last month it was the oil speculators pulling down Americas pants and bending us over, now it’s big oil screwing us and without the lubricant they themselves create. As I contemplate my next scintillating QWERTY quote I am struck by the absolute idiocy one must possess to take either position. Look folks, this is such a target rich environment I’m not sure where to begin. Wait a minute, sure I do, let’s take on their last argument first, those evil capitalists’ speculators who not only want to drive up the price of oil, they also want to eat your children, especially minority children. I have some experience here and could opine and dazzle you for pages and pages yet, brevity being the soul of wit I’ll simplify what is actually very simple. Speculators are betting on the future yet cannot change it. Think of it this way, you bet on a football game, you are speculating on the winner yet, your bet will not affect the outcome of the game. This is what I do, make the complex, simple and the best part is the education I bestow upon you, my loyal readers is absolutely free. That is unless you choose to send me a check, please make it out to cash; and let’s keep the IRS out of this, shall we.

Let us now assail the lefts latest charge last, yet not least. Exxon-Mobil reported a quarterly profit of $11 billion dollars. What you haven’t heard is that during that quarter they paid $33 billion dollars in taxes. Exxon’s return on investment was 10%, well below the S&P 500 average of 11.5%. So, in all actuality they are under performing. Now, certainly $11 billion is a large amount but it is merely reflective of their enormous investment. If you deposit $100.00 dollars in a passbook account and I deposit $100,000.00 in the same type of account my profit will be much greater than yours. And, lest we forget, Exxon-Mobil is a publicly held company. Sure, there are a relatively few top executives at the top making fortunes but the real winners when companies show a profit are the share holders. Recently, the genius economists Walter Williams pointed out that if you took all of Exxon’s profits and the salaries of its top executive’s gas prices would drop a nickel a gallon for two weeks. While I have your undivided attention I would also like to slay another straw dog put forth by these mental midgets led by this big eared, Christ like, all merciful Obama. Oil companies do not set the price for crude. The markets, “or the buyers” set the price, after all, it is a commodity. These public pontificating posits are as preposterous as farmers setting the price for corn. The buyers, “markets” set the price. This is economics 101 and apparently the chosen one slept through that class when he attended the prestigious and pernicious, all exalted Harvard University.

And, let us pose a question; why is Evil, big oil, these money grubbing polar bear hating, child eating, capitalists being vilified by these leftist loons? Why choose them as a target for unabashed hatred and debauchery? Hmmm? Why doesn't Mr. Obama slap a windfall profits tax on sectors of the economy that have fatter margins? Electronics make 14.5 cents per dollar and computer equipment makers take in 13.7 cents per dollar, according to the Census Bureau. Microsoft's margin is 27.5 cents per dollar of sales. Call out Mr. Obama's Windfall Profits Police! At the same time, the financial services industry took in $498.5 billion in profits, the retail industry walked away with $137.5 billion, and information technology companies made off with $103.4 billion. What kind of special outrage does Mr. Obama have for these companies? Look these denigrations of Evil oil are simply vilifying an easy target and playing to the least common denominator. There are far too many Americans out there who matriculated through our public school system and either dropped out or graduated with a gentlemen’s “D” average. The American electorate has been purposely been ill educated and cannot grasp basic economic principals. I can remember taking both civics and economics in high school. Today neither class is taught in our schools. I wonder why?

Conservative Springfield 07AUG08