Saturday, November 19, 2005

Price Gouging?

While talking about the price of gasoline and so called price gouging with my wife I came up with a good analogy of why the oil companies are and should make billions in profit.

Here's my explanation. Tell me where I am wrong.

If I had a large delivery business that covered the USA and abroad like say, UPS (let's check their profits by the way) and I made 50 million deliveries per day charging $20 per delivery that would equal 1 billion dollars per day or 365 billion per year. Now that would be gross profit. Once you back out operating costs of $15 per delivery it would leave me a net profit of roughly 90 billion dollars per year.

Now look at the Oil company Exxon. They sell a product that is used all over the world, including America. You can look on just about every other corner in Charlotte and any other major city and find an Exxon station. They sell gasoline and many other products and by-products of oil. Let's say that any given day around the world the sell 50 million gallons of gasoline at 10 cents net profit per gallon. That would be 100,000,000.00 or 100 million dollars per day profit which in turn would be over 3 billion dollars profit per year just on gasoline sold here in the USA. Again they sell oil, gas and the by products from each barrel.

My point is that when you have a large company that is spread out over the world and sells a product that is purchased by millions of consumers each day you will make huge profits!

So, the US Congress who in fact has blocked legislation for over 25 years to drill for more oil here at home and build refineries in order to process more fuel (increasing supplies in the USA which would in turn lower prices) all the while putting restrictions and regulations on the oil companies and how they can produce and refine their product is going to hit Exxon and others with a windfall profits tax. Why then should they not go after any other company that has made billions in profit?

(Don't forget that the federal tax for a gallon of gas is 18 cent. They pool billions per year in Washington from this single fund and spend it as they wish. It's supposed to be for roads but take a look in your city and tell me if that's where it is being spent.)

I suppose they already have. Microsoft and Phillip Morris comes to mind. When will they get UPS or GE.? Who's next? When will they decide in their socialist wisdom that no company should be able to make too much profit and once you reach a certain point of profitability you have to turn over the rest to the government? Where do we live in America or North Korea????

Then go a step further and ask yourself what does the government do with the money they confiscate from You, me and Exxon? They spend it like a drunken sailor on every stupid little thing they can find in order to buy votes in their home district. They give it away to foreign countries like it was candy at Halloween. They enter into contracts with companies they have under the table deals with and buy millions of $300 hammers. They have a blank check book and can spend, spend, spend with no regard for a balanced budget.

No, no, no! I think we may have it backwards here! We have to fight against these so called public leaders and let them know we will not stand for their legal thievery. It is Congress who is stealing from you and I not Exxon. Exxon is creating millions of jobs and providing a very important product to us so we can get to our own jobs and make a living.

All the while Congress is constantly patting us on the back smiling and whispering in our ear how much they care for us and want to help us while they slip their hands in our back pockets lifting money from our wallets!


That feels better...

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