It'll be interesting to see. I just hope they keep pressing on and we don't drop all this new stuff and settle back into the old stuff just because gas droped a few cents a gallon.
Personally, I've been anxious about prices since the day they went over $1. But then I'm a cheap SOB.
In fact, I'm outraged that the gas companies made the highest profits in history--again--breaking last year's 4th quarter records. $15,000 a second while the rest of the country teeters on the brink of a recession just makes me ill.
I hear a lot about windfall profits, but no one says where the line is. Well, actually, they're starting to say, as this article finally gets around to saying:
Apparently, the only way to stop people being outrageed at gas companies making profits is to "Nationalize" them, have the Government take over. Gas prices will be beyond obscene, we will have The Benevolent Hand Of Government saying who can buy how much gas when, but at least there will be no windfall profits involved.
I don't like that they're making these ginormous profits while the rest of the country suffers because of it, but I'm not suggesting that congress should get involved. I think Obama is guilty of pandering to a panicked public with his proposal (and I'm guilty of aliteration).
Besides, taxing a company for making "too much money" just sounds unAmerican to me and where do you think the consumers fit into all this? Between a rock and a hard place.
I think it's poor math to talk in terms of raw dollars, however; what's the Return On Investment? At least then you can argue whether the the ROI is reasonable for the risk involved, and try to justify the case. Just saying that some arbitrary amount is too much is an unfounded argument.
On edit: I found this in the WSJ article, which seems to back up my argument.
Maybe they have in mind profit margins as a percentage of sales. Yet by that standard Exxon's profits don't seem so large. Exxon's profit margin stood at 10% for 2007, which is hardly out of line with the oil and gas industry average of 8.3%, or the 8.9% for U.S. manufacturing (excluding the sputtering auto makers).
If that's what constitutes windfall profits, most of corporate America would qualify. Take aerospace or machinery -- both 8.2% in 2007. Chemicals had an average margin of 12.7%. Computers: 13.7%. Electronics and appliances: 14.5%. Pharmaceuticals (18.4%) and beverages and tobacco (19.1%) round out the Census Bureau's industry rankings.
Last edited by Don; 08-05-2008 at 02:46 AM.
I wrote a blog.Between a good and a bad economist this constitutes the whole difference - the one takes account of the visible effect;
the other takes account both of the effects which are seen, and also of those which it is necessary to foresee. ~Frederic BastiatEconomics puts parameters on people’s utopias. ~Peter BoettkeThe 'social contract' is to the politician what 'original sin' is to the priest. ~DonThe vision of the helpful and protective state is the most pervasive and counter-productive ideology in the world today. ~Don
I tend to blame the Feds for Don, actually.If they'd get it right, we wouldn't need Don pointing out that they'd gotten it wrong.~ Medievalist
We're planning to get a motorcycle next year for most of my husband's running since he doesn't really haul anything. It would give me freedom of having a vehicle, and cut down our gas usage by about 50%, which we don't use that much to begin with, but hey, every bit helps.
I got nothin', I'm just stalking Bart to creep him out.