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Apr. 28, 2006 Now we have the latest example of political gamesmanship which politicians are using to woo voters in this election year. Unfortunately, just as in most of these endeavors, the ultimate winner will not be the voters; however, that's not what the politicians will tell us. Big Oil is the culprit du jour. ExxonMobil just announced a first quarter profit in excess of $8 billion and, at a time when gas prices are headed toward (and even beyond) the $3.00 per gallon mark, that is perfect fodder for the politicos in Washington, D.C. to come to the rescue. The situation was only exacerbated when the retiring C.E.O. of Exxon was recently handed a going away present of about $400 million in cash, stock and other perks. Democrats in Congress, with an eye on taking over at least part of that body in the next election, started the inflammatory rhetoric, a talent they mastered long ago. (I believe one has to pass a class in demagoguing in order to run as a Democrat.) The willing media, as usual, was too happy to echo whatever charges their politician friends were leveling. It's a perfect opportunity: we have this "oil baron" president, gasoline prices are skyrocketing and oil companies are raking it in. Clearly something is not right here and clearly it must be addressed. Over the last week or two the media, print and broadcast, has been blasting Big Oil endlessly. "Gouging" is the term that has been bandied about more than any other, as if the price at the gas pump and announced profits of oil companies are prima facie evidence of this immoral act. Don't these oil companies realize the American pubic has an inherent right to pay no more than a "reasonable" amount for gasoline? And, further, don't these heathens understand that making $8 billion in profit in one quarter is "too much"? After all, the Constitution of this great nation clearly spells out the maximum earnings that the government can allow for any business, doesn't it? If a company is making too much profit it must be doing something illegal. Of course, we'll have to overlook the fact that Exxon had to pay the government $25 billion in taxes in the same quarter in which it made $8 billion, more than three times the profit for those of us who may be mathematically-challenged. And the government works hard for its share. It has to sit and watch Exxon take all of the operational risk of producing gasoline and other finished products from crude oil in a highly dangerous and volatile industry, while being careful to meet all government-imposed regulations and manage the work of about 100,000 employees. The government's role? Well, it cashes the check. Now the Republicans are getting into the mix, not wanting to be outdone by Democrats in an election year. This party is supposed to be the voice of reason in circumstances like this. These are the people who ostensibly understand Economics 101 and the laws of supply and demand--that if we the public are buying ALL of Exxon's gasoline at $3.00/gallon it has no incentive to lower the price of that product. Republicans should understand that China's economy, and its energy needs, has doubled in the last five years. They know we have not built a refinery in this nation in thirty years and that world uncertainty has ratcheted up oil pricing significantly. They also know that the fortunes of corporations rise and fall through the years--today's good times turn into tomorrow's troubles all too easily (just ask General Motors), and that money made in good times must be used when the waters become rough. In an election year, however, common sense and facts takes a back seat to other agendas. The voice of reason, apparently, must be silenced to win elections. So politicians talk about "windfall profits" taxes, breaking up the oil companies and performing investigations to "get to the bottom" of this situation. Oil companies have to be put through an effective colonoscopy by Washington's leaders who confiscate our money and spend it at record rates. Exxon, which earns about 9% profit (or about 27 cents per gallon @ $3/gallon) on oil has to be held accountable for that profit by bureaucrats who are taking over 60 cents for each of those gallons. Anyone who believes this is reasonable isn't paying attention. Democrats and Republicans are both catering to politics over the good of the nation. Their tinkering in this situation is far more likely to blow up in all of our faces than actually solve anything. Of course, as usual, the Democrats are the driving force behind the insanity, making empty charges and accusations which make great television bites; the Republicans, now in full defensive mode, are only adding to the problem. ------------ About the author: Ed Abraham is a concerned citizen living in flyover country, U.S.A., who happens to be truly disgusted by the loss of common sense in our society and is doing all he can to try to reinstall it. Email: eabra@myway.com Comment on this article here! ------------ All articles are EXCLUSIVE to Useless-Knowledge.com. Please link to this article rather than copying and pasting it onto your site (which would be unauthorized and illegal). |
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