I can understand the impulse of many Americans to grab some of the record profits the oil giants are enjoying -- some 44 billion dollars in the second quarter for the top 5 corporations; almost 12 billion for ExxonMobile alone.
But I'm not sure it's good economics.
Barack Obama has proposed a windfall profits tax to fund a $1000 emergency rebate check for families making up to 150 thousand dollars a year.
Ahh.. elect me and I'll give you money.
Both parties love that game, and few people in that pay range would complain, I'm sure.
But here's some perspective.
ExxonMobile's profit margin is 8.5 percent, which is not excessive by the standards of other industries.
Microsoft's is almost 30 percent.
Exxon will invest 25 billion dollars this year in capital programs, and has 119 active projects to find and produce more oil and gas.
I'm no apologist for the oil companies, but OPEC and the Russians have more control over the supply. Some suggest the US oil companies are just along for the ride as OPEC limits supplies to increase prices.
Others point out that global economic growth, especially in China and India, has fueled new demand that will not go away.
Do we deserve a share of Exxon's profits? I'm not convinced we deserve anything, especially since most Americans did very little to conserve until $4 dollar a gallon gas made it an economic necessity.
Your thoughts?
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drerunner
Aug 1, 2008 | 11:13 PM |
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thatlisagirl
Aug 2, 2008 | 10:43 AM |
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thatlisagirl
Aug 2, 2008 | 11:04 AM |
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RussSpencer
Aug 2, 2008 | 5:10 PM |
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thatlisagirl
Aug 2, 2008 | 6:03 PM |
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drerunner
Aug 3, 2008 | 11:53 AM |
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thatlisagirl
Aug 3, 2008 | 1:07 PM |
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trippydude
Aug 3, 2008 | 4:48 PM |
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drerunner
Aug 3, 2008 | 6:44 PM |
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drerunner
Aug 3, 2008 | 6:45 PM |
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goneforgood
Aug 4, 2008 | 2:23 PM |
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goneforgood
Aug 4, 2008 | 2:27 PM |
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I anchor the evening news on Fox 5 at 5, 6, and 10pm. My wife and I have 6 children, 5 girls and a boy. That sums up my life pretty neatly.
Member Since: 4/10/2007