Today's the day that the oil company execs will stand in front of Congress and answer to charges of 'excess profits'. Here's a well written conservative view posted by Neal Boortz this morning:

PANDERING TO THE IGNORANCE OF THE PEOPLE

The big show in Washington today will be posturing Senators browbeating oil company executives over their profits. The anti-capitalist left in this country has been trying for generations to demonize the very concept of profits, and today we'll learn just how much success they've achieved.

If you listen to your friendly television newsperson you'll see almost universal approval of the proposal to seize oil company profits. If you asked one of these people what "inventory profits" were, and why inventory profits rise and fall quickly, they wouldn't have a clue. I doubt that 10% of them could correctly state the difference between profits and profit margins, nor could they come within a few points of telling you what Exxon-Mobile's profit margin was for the last quarter. These news readers shouldn't feel bad though, they're right in step with the vast majority of the American public. Ignorance of basic economic matters is rampant (thanks to government schools) and politicians will always exploit ignorance to expand their power.

These hearings today will be a huge victory for those who dream of government ownership and control of the means of production. Profits have long been described by the left using terms like "obscene," "excessive," and "windfall." Any way you cut it, profits are an ugly thing to the left. Generations of American school children, under the loving guidance of their leftist union school teachers, have either learned that profits are evil, or have learned nothing about the concept of profit at all. These school children have now grown into adults with voter registration cards in their pockets ... adults who couldn't write a cogent paragraph on the role of profits in the creation of our dynamic American economy. Even Republicans, like Senate Finance Committee Charles Grassley, know what the voters don't know and are eager to exploit their ignorance with calls for evil oil companies to "give back" profits to "the people."

While we're at it, how do you like that "give back" line? Politicians are so clever. There is no "give back" here. It's just "give." To use the term "give back" as it relates to corporate profits is to imply that the profits were given to the corporations in the first place. Businesses don't receive profits as gifts. They EARN tem. The whole "earn" concept is something else that is unfamiliar to the products of our illustrious government schools.

Now ... let's see if these oil company executives have the courage to stand up to these fascists today. My guess is that they will cower in the face of a political onslaught. After all, it's all about the goodness of government and the evil that is business ... right?

 

I'm sure Boortz could explain inventory profits and profit margins but, I'm really not interested in that.

This is what I want Mr Boortz to explain to me:

A month ago, a Utility worker cut a power line in Los Angeles.
It caused a power loss in part of the City for about three hours.
During that period of time, gas prices in LA went up 35 cents per gallon.

If Mr Boortz can explain that phenomenon to this fascist, then I will gladly accept his other economic theories and pay whatever 'The Man' wants me to pay without complaint or question.

 

You will probably find that this falls under profiteering by the gas stations.
There's no way a major corporation could get on something like this so quickly and have them raise prices so quickly.
It's no different to the recent price gouging happening in the Hurricane areas and the laws of supply and demand.
I was in Houston last year when the Superbowl was there and hotel prices went through the roof.
Same thing, local supply and demand.

 

Raoul-
It's proof that the economic law of supply and demand actually works.

 

It was a chain reaction....

One station tried to lower their price but because it was dark he put up the wrong numbers...his neighbor saw him do that and said ..."ME TOO" and then it was just a bunch of dominos. The problem got all the way to Arizona before a Wal-mart employee realized the mistake.

 

Thank You.

Now substitute the words "Utility Worker cuts power line"
with the words, "Hurricane strikes gulf coast"
and all we will have done is change the 'Scale' of an event.

Then we can go back to your first statement (adjusting scale)
You willl probably find that this falls under profiteering by the Oil Corporations.
This is what the senate wants to ask about.

 

So the law of supply and demand only works for gas?

Milk didn't go up 35 cents during the 3 hours.
Neither did bread nor toilet paper.

 

Well supply and demand will eventually correct the problem but it might require a lot of vasoline to get through it.

If prices continue to stay high, it will drive the market for alternative fuels. This is going to happen either now or in 30 years but it will happen. Eventually oil companies will have no market so they are just trying to get their money now...

Raoul, think about their children, they have to eat too you know.

 

Don't get me wrong, high gas prices are the only thing that will ever get this country off of the oil rig teat, so I'm all for that.

Just don't blow in my ear and tell me there is no profiteering going on.
And don't tell me it's because I'm not swift enough to understand profit margins, supply and demand or any other terms thought up.
I don't drink that kool aid, either the Red or Blue flavor.

I'd like to see gas prices at $8 per gallon and hold.
That would start us down the right road.
I don't have sons to worry about but, someday I may have grandsons and I don't want them battling in the MiddleEast so the US of A can get it's daily fix.

 

Ok Raoul, let me try and explain Supply and Demand even though you claim to understand it.

That's the Supply bit going DOWN
Would you also believe that as the Hurricane was hitting, people started to panic buy and demand went UP.

Probably because people didn't go out and panic buy those items.
Believe me, if milk and bread were only to be found thousands of feet underground and bought on the futures market and pretty much only available from unstable 3rd world countries, you would see some hikes.

Sheesh

 

You use that word like it's a sin or something. Do you believe it should be illegal for any company to make a profit? Do you believe that government should determine 'fair' prices for everything? Or do you believe in the open market system of supply and demand?
Russia tried that 'government control of all prices' thing for a while. They called it 'Communism' and it was proven to be a faulty economic model.

 

There is a difference between profit and profiteering. the government regulates utilities like natural gas and electricity. Profits are made there and their children eat. We have laws that prevent trusts and monopolies from screwing us all back into poverty so they can make even more money. There a nice balance between communism and financial Darwinism and we've been living it here in the good old US of A for a long time. The government took down Standard Oil and US steel, maybe big oil is next. I'm not saying that we need to nationalize oil companies and get government cards for gas, but I don't think there is anything improper with the Senate putting big oil under the microscope to make sure they are not giving Capitalism a little roofie to put in the drink of the American public. then again, maybe I just like playing devils advocate.

 

In your thread opening, you typed "answer to charges of 'excess profits'I"
My response was yes.

Exxon profits in the last quarter were 9 Billion dollars.

Those are the facts.

Here is where you misunderstand me:
I wish their profits for the last qtr were 27 Billion.

Now do we have a meeting of the minds?

 

Glad we all agree then

Greed is Good

 

I too have no problem with them making a profit, my problem is with them breaking it off in us just because they can. I think they took advantage of the American public during the hurricane fiasco and now all of a sudden prices are back down almost $1.00 a gallon......bullsh#$. They have us by the ba!!s and they know it. Let a car dealer make 9 billion profit one quarter and see how long they last...people will go somewhere else....duh! Oil companies know we have no where else to go so we're fair game. The sad part is that they will put this economy in a tailspin (already happening, look at new car sales) that will take years to dig out of. We may need their product but we sure don't have to like or defend them. Screw em!!!