When the rest of the economy is in recession,
yet the gas companies are seeing increased and even record profits; case in point…
Real economics doesn’t work that way in a free country, only a govt-controlled economy, where profits are arbitrarily determined. In our economic system, a company’s profits(and losses) are due to their business choices. It is possible for a company to do well, even when other sectors are not, and it is possible for a company to fail, even in an economic boom. The relationship you believe in doesn’t exist.
BTW, we are not in a recession.
The profit margin of the oil companies hasn’t increased, so their increasing net profit is due to good management and selling more product; in other words, there are no “windfall profits” in the oil industry.
On the other hand, the govt is enjoying windfall tax profits; maybe they should cut their tax rates on the oil companies.
robert108 - 12:04pm on 04/30/2008
Not only that Robert, poor government policy is the largest controllable reason that gas prices are so high.
Real economics doesn’t work that way in a free country, only a govt-controlled economy, where profits are arbitrarily determined. In our economic system, a company’s profits(and losses) are due to their business choices. It is possible for a company to do well, even when other sectors are not, and it is possible for a company to fail, even in an economic boom. The relationship you believe in doesn’t exist.
BTW, we are not in a recession.
The profit margin of the oil companies hasn’t increased, so their increasing net profit is due to good management and selling more product; in other words, there are no “windfall profits” in the oil industry.
On the other hand, the govt is enjoying windfall tax profits; maybe they should cut their tax rates on the oil companies.
Not only that Robert, poor government policy is the largest controllable reason that gas prices are so high.