"America's oil companies have earned every penny of their profits."

[Robb]

from our friends at the Ayn Rand Institute:

Drop the "Windfall Profits" Smear
By: Alex Epstein

The recent announcement of record profits by ExxonMobil and Chevron is being met by widespread denunciations of oil companies' "windfall profits"--and the demand that these profits be "given back" to society via a proposed $20 billion tax. As Representative Dennis Kucinich and others say, they seek "to tax only excess profits, leaving . . . reasonable profits unaffected." Such taxation is justified because the recent low supply and high demand that led to higher profits, explains economist Dean Baker, "is kind of good luck. They didn't do anything to earn it."

But America's oil companies have earned every penny of their profits. To characterize any portion of them as an unearned "windfall"--like manna dropped from heaven--is a vicious smear. It is to evade what is truly responsible for their profits this and every quarter: the great value they create and the tremendous thought, effort, and risk-taking that goes into creating it.

Virtually forgotten in the condemnation of oil profits is that the great--and growing--global demand for oil reflects its great value. Producers and consumers have been willing to pay $70 a barrel for oil because it is worth that much to us. Oil is used by us to get quickly from point A to point B by car, train, or jet. It is used by efficient factories overseas to produce the ever-cheaper goods we get at Wal-Mart. In the event of a natural disaster, it allows us to drive to a safer place or to generate power to begin a recovery.

(more)

:eyes:

[kurth]

1. Yep, upping prices DAILY is hard work

[Robb]

4. Hey!

...Those big plastic numbers don't hang themselves! :D

[CTLawGuy]

2. what really bothers me is the subsidies

I don't think these oil companies should get any more subsidies while they are making record profits.

[Selatius]

12. Amen. In other words, "END CORPORATE WELFARE" n/t

[Cyrano]

3. As Bush would say, "Stealin' is hard work."

[librechik]

5. This explains the soaring cost of prescription meds too!

"Producers and consumers have been willing to pay $70 a barrel for oil because it is worth that much to us. Oil is used by us to get quickly from point A to point B by car, train, or jet. "

Gee, I wonder if they'd be willing to pay to save their lives and avoid suffering?

And this makes them different from a Mafia protection racket how?

[ClintonTyree]

7. What do you expect from the Ayn Rand Institute.........

they think the robber barons earned every penny they made as well. The Rand Institute is about as "fair and balanced" as FAUX News. :eyes:

[AndyA]

6. Bullshit

BULLSHIT

We're talking about PROFITS here. This is after expenses have been paid. After executive and CEO salaries and perks have been paid. After the cost of buying the oil, transporting it, etc., have all been paid.

Oil is a requirement in today's society. It is necessary for most people, just like water, air, and electricity are requirements. For this reason, the price should be regulated. There is no competition, so there are no checks and balances to prevent price fixing.

The prices we have today are not totally due to supply and demand, they are also partly due to the Bush Administration's super secret Energy Policy, in which all the oil company CEOs were in attendance. This is an outrage and is treasonous against the American people.

The thought that the oil companies have somehow done something to deserve these obscene record-shattering profits is pure

BULLSHIT

[walldude]

8. This is classic:

"It is used by efficient factories overseas to produce the ever-cheaper goods we get at Wal-Mart"

Reality translation:

"It is used by sweat shops in China so we can export cheap usless crap for Wal-Mart."

Nice try though :eyes:

[ItsTheMediaStupid]

16. China burns a lot of coal to produce electricity for those factories

That coal is mined with little regard for the safety of the miners and burned with no regard whatsoever for the pollution it creates.

Never mind that the rigged "competition" from China is turning the US into a third world country in terms of wages.

[The Backlash Cometh]

9. Ayn Rand is to public service as Devil Worship is to religion.

[sam sarrha]

10. that is how Clinton was balancing the Debt..taxing Windfall profits

[gratuitous]

11. If oil companies are so thoughtful . . .

Why do they get caught with short supplies every six months when they switch over from summer to winter gasoline formulations?

Game. Set. Match. Thanks for playing, libertarian loons. Now, buh-bye.

[sendero]

13. Sure..

.... creating monopolies, colluding on price and gouging the consumer is hard work.

[Bonhomme Richard]

14. Heh!, It's hard work stealing legally. n/t

[mopinko]

15. they have colluded to tighten supply

they have agreed to restrict refinery capacity, and artificially restrict supply. to say nothing of having their pals in office send soldiers to die for them.
personally, i think this talk that iraq capacity is off line, and their production is off is a lie. i think that it is just being pumped out under the table.

[ItsTheMediaStupid]

17. Chimpy helped them with sword rattling at Iran. Katrina helped too.

Katrina did reduce US refinery capacity, which drives up prices.

However, we're at the point where any sane leaders would regulate oil and gas prices. Otherwise, the economy is going to go into a tailspin.

[ProfessorGAC]

18. Complete Idiocy

I'd like to ask this guy one question: Which other industries can automatically raise their prices to maintain the same proportional margins, when their raw material prices increase? The answer is ONLY THE OIL COMPANIES CAN RAISE PRICES TO MAINTAIN THEIR MARGINS EVERY TIME OIL PRICES RISE!

So, since they are benefitting from an increased price of crude, their are exorbitant profits for which the oil companies have done nothing novel, productive, or extraordinary. They make more because the oil costs more.

And he thinks expectations that they pony up an little extra is a "smear"?

What a buffoon.
The Professor

[ProfessorGAC]

19. Dupe

.

[Maat]

20. Mr. Epstein (to the author of the article, not the original poster):

I do not need a lesson in theoretical economics from you; I'll bet I have more education; you, Sir, seem to be seriously separated from most people's reality. Just because certain families were more ruthless and calculating way back when, and were able to get a hold of significant resources to the exclusion of others, does not mean that that a poor person should be precluded from getting to their job, losing everything, you heartless pr**k.

Grrr ... I'm so ticked off right now, I can't even write.

Bet the author's mommy is still wiping his butt when he goes poopy; still, he has the nerve to consign everyone else to H*ll.

And, I agree, we need to end corporate subsidies, and maybe change tax rules for disgustingly arrogant oil jerks who are heartless.