Big Oil, Little People
Well you see, this is one thing I don’t blame the oil companies for (read article). But while I’m not blaming the oil companies, it is the public that is really getting screwed, as usual.
But this is one thing I do blame the oil companies for. You see, even though companies like Google may have huge profit margins too, Google didn’t take their money out of my pocket. The oil companies did. Look, we’ve tried having a President in the Oval Office who is chummy with Big Oil, Big Business, etc. Don’t we want to try having a President who cares about people like you and me? Not only that, but doesn’t this article shine a light on the fallacy of supply side economics? I mean, these oil companies have so much cash they don’t know what to do with it. So, are they going to use it to build new refineries? No. Are they going to use it to create jobs for people who need jobs, like the Bush economic theory is supposed to go? I doubt it. Are we going to get rebates? I'm not holding my breath.
Yes, the country is moving in the wrong direction, and we need a change, bigtime.
But this is one thing I do blame the oil companies for. You see, even though companies like Google may have huge profit margins too, Google didn’t take their money out of my pocket. The oil companies did. Look, we’ve tried having a President in the Oval Office who is chummy with Big Oil, Big Business, etc. Don’t we want to try having a President who cares about people like you and me? Not only that, but doesn’t this article shine a light on the fallacy of supply side economics? I mean, these oil companies have so much cash they don’t know what to do with it. So, are they going to use it to build new refineries? No. Are they going to use it to create jobs for people who need jobs, like the Bush economic theory is supposed to go? I doubt it. Are we going to get rebates? I'm not holding my breath.
Yes, the country is moving in the wrong direction, and we need a change, bigtime.
posted by Ed Bremson, MFA @ 10:26 AM
7 Comments:
At 8:32 PM,
Anonymous said…
Your comparison of the source of profits for Google and big oil is amusing, but incorrect. Google's profits DO come from your pocket, albeit indirectly. You pay for Google's profits through the products you buy from Google advertisers.
How did you feel about big oil when crude was $9 a barrel and profits were scarce? Now that oil is becoming scarce, who will pay for development of new sources of energy? Big oil needs these seemingly out-sized profits to develop new sources and technologies to feed our future hunger for energy.
Your argument stirs emotion, but has no basis in economics.
At 6:35 AM,
Carl said…
Anonymous,
Errrr, those Google profits were budgeted for and built into the costs of the products we purchased and would have been spent on radio or TV or print ads anyway. Meaning that competition for your purchasing dollar comes into play: if a company spent too much on advertising and had to raise it's prices because of that, another company could come along and undercut their price and steal some business.
The oil company profits were windfall oligopolic profits and sucked directly out of our pockets.
Your analogy is fraudulent.
At 6:36 AM,
Carl said…
Ed,
See if you can find a DVD of "The Oil Factor", and you'll see where these monies went to.
PS It wasn't to research and development...
At 9:36 AM,
Ed Bremson, MFA said…
So let's see, Google's profits do come from my pocket, but not really? OK.
And big oil is going to use these profits "to develop new sources and technologies to feed our future hunger for energy?" I wish that was the case. From what I read it doesn't seem to be the case, including one of the articles cited in my article.
Anyway, let's wait and see the results of congressional investigation of price gouging.
In the meantime, while you're trying to heat your home this winter, and the prices go higher, tell me who you blame, Google or Big Oil.
At 9:55 AM,
Anonymous said…
Poor big oil. It needs its profits. Boo hoo hoo.
At 11:12 AM,
Carl said…
No, David, and if you paid attention to my post rather than your own hysterics, you'd see that the money paid to Google would have been earned anyway, but the profits earned by ExxonMobil and the other oil companies these past few months ARE WINDFALL PROFITS!
Which means they skip nearly ANY contervailing expenditure and end up as pure profit to the oil company.
errrr, you DID study economics, correct?
Perhaps you might consider returning your degree.
At 1:02 PM,
Carl said…
*YAWN*
David, I'll go over this one more time...no wait. I'll make you do it.
Go to wikipedia, and go look up "monopoly profits" and report back what you find.
That's what Ed is objecting to.
MmmmmmK?
Post a Comment
<< Home