The 'Recession' Is a Media Myth

[Last Resort]

During the 2000 election, with Bill Clinton as president, the economy was viewed through rose-colored glasses. According to polls, voters didn't realize that the country was in a recession. Although the economy started shrinking in July 2000, most Americans through the entire year thought that the economy was fine.

 

But over the last half-year, the media and politicians have said we were in a recession even while the economy was still growing.

 

Gas prices are going up. The economy is slowing. Talk of recession is seemingly everywhere. While the majority of people rate their personal finances positively, consumer confidence in the economy has plunged to a 16-year low, well below what it was during the last year of the Clinton administration when we were in a recession.

 

A Nexis search on news stories during the three-month period from July 2000 through September 2000 using the keywords "economy recession US" produces 1,388. By contrast, the same search over just the last month finds 3,166. Or, even more telling, take the three months from July through September last year, when the GDP was growing at a phenomenal 4.9 percent. The same type of Google search shows 2,475 news stories.

 

Over 78 percent more negative news stories discussed a recession when the economy under a Republican was soaring than occurred under a Democrat when the economy was shrinking.

 

A little perspective on the economy would be helpful. The average unemployment rate during President Clinton was 5.2 percent. The average under President George W. Bush is just slightly below 5.2. The current unemployment rate is4.8 percent, almost half a percentage point lower than these averages.

 

The average inflation rate under Clinton was 2.6 percent, under Bush it is 2.7 percent. Indeed, one has to go back to the Kennedy administration to find a lower average rate. True the inflation rate over the last year has gone up to 4 percent, but that is still lower than the average inflation rate under all the presidents from Nixon through Bush's father.

 

Gas prices are indeed up 33 percent over the last year, but to get an average of 4 percent means that lots of other prices must have stayed the same or gone down. On other fronts, seasonally adjusted civilian employment is 650,000 people greater than it was a year ago. Personal income grew at a strong half of one percent in just February.

 

Despite all that, this last week, Barack Obama proclaimed "As most experts know, our economy is in a recession." Hillary Clinton made similar statements last fall. Yet, as any economist knows, a recession is two consecutive quarters of negative growth, and we haven't even had one single quarter of negative growth reported. The economy slowed down significantly during the end of last year, but that was after a sizzling annual GDP growth rate of 4.9 percent in the third quarter.

 

Housing has obviously been a big drag on the economy, but many other sectors of the economy, such as exports, have been doing well, some extremely well. For example, aerospace exports increased by over 13 percent last year.

 

The media's focus on the negative side of everything surely helps explain people's pessimism. In a recent interview Fox's Neil Cavuto claimed this bias "is all part of the media's plan to get a Democrat in the White House."

 

Indeed, research has indicated that media bias is real. Kevin Hassett and I looked at 12,620 newspaper and wire service headlines from 1985 through 2004 for stories on the release of official government releasing numbers on the unemployment rate, number of people employed, gross domestic product (GDP), retail sales, and durable goods.

 

Even after accounting for how well the economy was doing (e.g., what the unemployment rate was and whether it was going up or down), there was still a big difference in how positive or negative the headlines were. Democratic presidents got about 15 percent more positive headlines than Republicans for the same economic news.

 

Yet, the hysteria created by this coverage can have another cost. It creates pressure for government to "do something," even if that rush to do something actually ends up hurting the economy. For example, Obama's promises last week "to amend our bankruptcy laws so families aren't forced to stick to the terms of a home loan" will only further drive down the value of mortgage-backed securities, making any unstable financial institutions that hold them even more likely to fail. In the long term, who is going to want to loan money when the contract can be rewritten at a later date?

 

The news media have generated a lot of fear. Ben Stein has a point when he says "The actual economic conditions are not that bad. I think if we have a recession, if we have a serious recession, a great deal will lie at the media's feet." Hopefully a little perspective will enter the picture before even more harm is done.

[TallRider]

Mike - source of quote and date?

[bluesky1]

This just confirms what anyone with any intellegence and the slightest knowledge about economics has know all along.

 

Thanks for the post.

Edited April 1, 2008 by bluesky1

[homer]

zzzzzzzzzzz....reds trying to minimalize the hurt the economy is in...... i'll give a pass on everything EXCEPT $4/gal gas, w/oil companies making record profits... that ain't right and no spin can make it right...

eric

[bluesky1]

zzzzzzzzzzz....reds trying to minimalize the hurt the economy is in...... i'll give a pass on everything EXCEPT $4/gal gas, w/oil companies making record profits... that ain't right and no spin can make it right...

eric

 

 

So what's your solution - make a cap on allowable profits? Will this just be for oil companies, or should all industies have maximum allowable profits?

[homer]

So what's your solution - make a cap on allowable profits? Will this just be for oil companies, or should all industies have maximum allowable profits?

i didn't say it was a problem (well, except for consumers)....i said it wasn't right..

as for solutions tho, how about lessening the fed/state taxes?..how about spending more on domestic oil and paying the states that produce it a fair share?...how about forcing opecs hand to produce more?..how about tapping the reserve? how about realistically subsidizing alternative fuel research? how about pressuring the oil companies to find ways to give the consumer a break? and if not..sure, how about capping profit--they collect from the consumer at the pump, they collect on transaction fees, they collect on credit card fees....$75 minimum?? (but feel free to do more than one transaction).....that should be illegal!....

i say cap any industry that hurts my yukon driving, 3 vehicle having, a/c running all day ass pockets

eric

[homer]

I change my mind..you're right..why try to stop loss now...let's let them inflate the price to $10/gal just because...talk about your record profits...

I don't get into politics enough to really care..we'll just keep paying whatever we have to because that's the way it is anyway.....i could care less who is president--i just pray for gridlock so nothing too drastic one way or the other happens....any politician who makes it to the presidency has tons of skeletons and bodies buried everywhere, and the parties are just undertakers...

eric

[bluesky1]

i didn't say it was a problem (well, except for consumers)....i said it wasn't right..

as for solutions tho, how about lessening the fed/state taxes?..how about spending more on domestic oil and paying the states that produce it a fair share?...how about forcing opecs hand to produce more?..how about tapping the reserve? how about realistically subsidizing alternative fuel research? how about pressuring the oil companies to find ways to give the consumer a break? and if not..sure, how about capping profit--they collect from the consumer at the pump, they collect on transaction fees, they collect on credit card fees....$75 minimum?? (but feel free to do more than one transaction).....that should be illegal!....

i say cap any industry that hurts my yukon driving, 3 vehicle having, a/c running all day ass pockets

eric

 

 

I agree with almost everything you say. Increase domestic production - drill in the Gulf and drill in Anwar. I can't believe the hypocrisy of the congress grilling oil execs on Capital Hill while telling them they aren't allowed access to some of the richest oil fields on the planet.

 

Tapping the reserve is like putting a band-aid on a severed jugular - just not a real long term solution.

 

Hell yes to forcing OPEC’s hand - but just how?

 

Alternative fuels - while I agree we need to continue the research, I don't think there will be a viable alternative to oil in our lifetime.

 

I also STRONGLY agree with cutting taxes (Not just on oil companies - everyfreaking thing) Obama and Hillary both endorse imposing higher taxes on not just oil companies, but all corporate taxes. Those higher taxes will just be passed along to the end consumer - Don't the people that support those two realize that a vote for either of them is a vote for higher cost of ALL goods.

[Last Resort]

I agree with almost everything you say. Increase domestic production - drill in the Gulf and drill in Anwar. I can't believe the hypocrisy of the congress grilling oil execs on Capital Hill while telling them they aren't allowed access to some of the richest oil fields on the planet.

 

Tapping the reserve is like putting a band-aid on a severed jugular - just not a real long term solution.

 

Hell yes to forcing OPEC's hand - but just how?

 

Alternative fuels - while I agree we need to continue the research, I don't think there will be a viable alternative to oil in our lifetime.

 

I also STRONGLY agree with cutting taxes (Not just on oil companies - everyfreaking thing) Obama and Hillary both endorse imposing higher taxes on not just oil companies, but all corporate taxes. Those higher taxes will just be passed along to the end consumer - Don't the people that support those two realize that a vote for either of them is a vote for higher cost of ALL goods.

 

Yep, it is funny how some wanna tax the EVIL corporations. How do they think the corps pay their taxes? LOL

 

If there was a viable alternative "fuel" someone would be exploiting it for a profit (I love capitalism). Once the price of petroleum products is high enough the dream of alternative fuels will become a reality. Last thing anyone needs is for the state to be involved in the development of alt fuels directly. The only way the state should be involved is thru tax credits.

[MOE]

I agree with almost everything you say. Increase domestic production - drill in the Gulf and drill in Anwar. I can't believe the hypocrisy of the congress grilling oil execs on Capital Hill while telling them they aren't allowed access to some of the richest oil fields on the planet.

 

Tapping the reserve is like putting a band-aid on a severed jugular - just not a real long term solution.

 

Hell yes to forcing OPEC’s hand - but just how?

 

Alternative fuels - while I agree we need to continue the research, I don't think there will be a viable alternative to oil in our lifetime.

 

I also STRONGLY agree with cutting taxes (Not just on oil companies - everyfreaking thing) Obama and Hillary both endorse imposing higher taxes on not just oil companies, but all corporate taxes. Those higher taxes will just be passed along to the end consumer - Don't the people that support those two realize that a vote for either of them is a vote for higher cost of ALL goods.

you are extremely correct

[Rat Fink]

Only one problem with the oil company tax issue and that is the current tax "breaks" they are stretching out for 10 years....the amount is $18billion. A drop in the bucket for the billions in profit. The breaks should have been dropped when the profits hit the roof. They claim they need these breaks to push exploration and I would say, take it out of your own pocket or don't explore......someone else will. And that is all about taxes.......our company squeaks by on 6% margin and doesn't get the tax breaks Exxon does.

 

As for the price, they are doing us a favor. Might as well see it now and not later. It really doesn't seem right that our prices are always rock bottom when Europe has been paying higher cost for decades. Right now the EU economy is looking pretty good because they went through this "adjustment" many years ago. Go across the pond in any direction and you will not see a Yukon or Expedition. BTW, regular gas in London is selling at our equivalent of over $9.00 a gallon, and they don't have George Bush to blame it on, same for the French and Boss Chief aren't you well over $4.00 a gallon?

[badndn]

I don't like the high gas prices any more than anybody else. BUT....we live in a free enterprise society. If you think gas is too high, then cut back on your useage, get a frikkin' hybrid and quit bitchin. I don't see the highways deserted on the weekends. I don't see people parking their tahoes and riding a bicycle. I don't even see any more people walking than ever before. So WTF? All we do is whine and want the goverment to step in and control yet another aspect of our lives. AS IF they could. If you don't like the price of gas, quit fucking using it. Sell your house, move up in the hills and write a manifesto about how evil big companies are. As long as we (as a people) are willing to pay the price, the price will go up. It (free enterprise) is what has made our country great and will continue to do so, providing a bunch of sniffling liberals don't turn us into a socialist state first. Simple as that. And Don't say you have to get to work....I ain't talking about that. Average cost for commute is less than 5 bucks a day, even at todays prices. 100.00 bucks a month. If you can't afford that, then you need to take another look at your lifestyle and if you can even afford to drive a car. A car is not an entitlement...not yet anyway.

Edited April 2, 2008 by badndn

[homer]

$5/day? maybe everyone you know works next door to their home? well, less than 10 miles both ways...i couldn't give a fuck about anyone else's cost actually...MY average commute to the work site is about 1000 miles; once at the site it's usually 100-200/day--mostly in the city...so I actually care about gas pricing.. it is what it is--and that's cool--except if it is what it is ONLY because the oil companies can charge what ever they want, with nothing to keep them in check.. as for the man controlling more--the government has actually grown more in the last 8 yrs than ever before...not all in good ways...fuckin republicans...puttin their knees on my neck...

eric

[homer]

Alternative fuels - while I agree we need to continue the research, I don't think there will be a viable alternative to oil in our lifetime.

 

I also STRONGLY agree with cutting taxes (Not just on oil companies - everyfreaking thing) Obama and Hillary both endorse imposing higher taxes on not just oil companies, but all corporate taxes. Those higher taxes will just be passed along to the end consumer - Don't the people that support those two realize that a vote for either of them is a vote for higher cost of ALL goods.

i agree we won't see an alternative supply...maybe if gm would have kept up with that project they had years ago..but gas was cheap then, there was no need to push it..they got good press for pretending to try tho...

 

on taxes, i was actually talking about taxes at the pump--that adds straight to the price..

 

the reality is, w/o some type of taxes, local, state and federal governments would cease to exist..we couldn't pay the politicians (which mite be a good thing). the individual will always end up paying taxes in any system---the amounts passed on the individual may vary?? there's "x" amount of money needed to run government...in general terms, the bigger burden is passed on to those who can afford to pay more...as much as I bitch about my tax burden, I accept that I have to pay some taxes as most years I eventually end up in the 33% bracket (although my account usually gets it all back for me )...

 

the true solution would be to figure out exactly what is needed after all the fat is cut and have a 0 balance at the end of the fiscal year--that'll never happen...so you either have to tax individuals more or tax corporations more or both...a flat tax won't work in the ideal situation (where there is a 0 balance) because some won't ever pay--can't squeeze apple juice from a grapefruit....

eric

[XV62]

I don't like the high gas prices any more than anybody else. BUT....we live in a free enterprise society. If you think gas is too high, then cut back on your useage, get a frikkin' hybrid and quit bitchin. I don't see the highways deserted on the weekends. I don't see people parking their tahoes and riding a bicycle. I don't even see any more people walking than ever before. So WTF? All we do is whine and want the goverment to step in and control yet another aspect of our lives. AS IF they could. If you don't like the price of gas, quit fucking using it. Sell your house, move up in the hills and write a manifesto about how evil big companies are. As long as we (as a people) are willing to pay the price, the price will go up. It (free enterprise) is what has made our country great and will continue to do so, providing a bunch of sniffling liberals don't turn us into a socialist state first. Simple as that. And Don't say you have to get to work....I ain't talking about that. Average cost for commute is less than 5 bucks a day, even at todays prices. 100.00 bucks a month. If you can't afford that, then you need to take another look at your lifestyle and if you can even afford to drive a car. A car is not an entitlement...not yet anyway.

 

Geezus, you're as out of touch with the real working class as most of the asshole politicians. About the only thing you said that's correct is that a car is not an entitlement. It is a necessity though, and for the folks making $15 per hour or less, their wages are hardly keeping up with the cost of living, much less the cost of fuel. Your examples of how to protest are as asinine. Move to to the hills and write? How's that support one's family? Buy a Hybrid? Have you priced one of those? Pretty pricey! Most of the working poor are doing good to keep their 10+ year old cars running. Take a look at their lifestyle? Most would appreciate having a lifestyle. And they do have to get to work, and most of those around here sure can't do it on any $5 a day.

 

This is exactly what is wrong with this country. The division between the rich and the poor. There ain't no more middle class.

 

You're a smart guy and most of the time I respect all you have to say, but there is something really antagonistic in your statements.

[homer]

This is exactly what is wrong with this country. The division between the rich and the poor. There ain't no more middle class.

i agree...sorta...

I personally think all high level politicians are worthless, talking outta the side of their necks, tell me what they think i want to hear, wouldn't trust them as far as i could spit on them assholes..i think that anyone who follows politicians strictly on party lines are not the free thinkers they think they are--NO party or politician has it all right.. I also think the only people to benefit or really get hurt by the president are the rich and the poor--as long as things don't swing too much to one side..those in the middle are just along for the ride...

eric

[MOE]

i agree...sorta...

I personally think all high level politicians are worthless, talking outta the side of their necks, tell me what they think i want to hear, wouldn't trust them as far as i could spit on them assholes..i think that anyone who follows politicians strictly on party lines are not the free thinkers they think they are--NO party or politician has it all right.. I also think the only people to benefit or really get hurt by the president are the rich and the poor--as long as things don't swing too much to one side..those in the middle are just along for the ride...

eric

lot of truth to that eric.

[badndn]

Geezus, you're as out of touch with the real working class as most of the asshole politicians. About the only thing you said that's correct is that a car is not an entitlement. It is a necessity though, and for the folks making $15 per hour or less, their wages are hardly keeping up with the cost of living, much less the cost of fuel. Your examples of how to protest are as asinine. Move to to the hills and write? How's that support one's family? Buy a Hybrid? Have you priced one of those? Pretty pricey! Most of the working poor are doing good to keep their 10+ year old cars running. Take a look at their lifestyle? Most would appreciate having a lifestyle. And they do have to get to work, and most of those around here sure can't do it on any $5 a day.

 

This is exactly what is wrong with this country. The division between the rich and the poor. There ain't no more middle class.

 

You're a smart guy and most of the time I respect all you have to say, but there is something really antagonistic in your statements.

Just so you will know, this is not in direct respone to your response. It is more of a general venting on my part. here goes..... This is America. You can be whatever you want to be. If you are born poor, you can rise up. If you are a minority, doors are open for you. I was born dirt poor. Son of a loom fixer of 45 years in a cotton mill. I fought for everything I have. I am not rich, but I have made an attempt to do SOMETHING. I don't think the goverment owes me a damn thing. I don't want anything from the goverment. In the real world you can't have everything you want without sacrifice and work.

The average commute to work is about 32 miles round trip. If you work farther than that from home, it is your choice, Find another job or move. Over 50% of Americans live less than 10 miles from their work. The average American drives 12000 miles a year. Every car. Not just the ones driven to work. that is 1000 miles a month. Let's say your car gets 18 MPG. That is using 2040.00 per year in gas. It costs 1200.00 for you to get to your work and back. The other 804.00 is mostly used in pleasure use. Nearly half the gas we use is for something other than going to work. Actually MUCH more than that when you consider that the average is 12000 miles for ALL cars. Many people have extra cars in the household. There are many things we could do to cut gas usage, but we don't want to. We want the goverment to get the prices down where we don't have to be bothered by watching our wasting of gasoline.

There is nothing antagonistic about my statements. I just get sick and tired of people bitching about everything. Gas prices, housing market, health care and on and on and on. People want the goverment to do everything for them. THAT is what is wrong with America today. Nobody is guaranteed a car, a nice house, a job, a 401k, health insurance, cheap gas, a nice low mortgage payment and retire a millionaire because you put money in your 401k every payday. You pick the lifestyle that you lead in most cases. That lifestyle is not altered because you spend 100 bucks a month for gas going back and forth to work.

The point I made about moving up to the hills was a joke, but it has some merit to it. There are many things you can do to change whatever situation you are in. If you are able bodied and of sound mind and you choose to work at a Mcdonalds 40 miles away from your home, then that is YOUR choice. Drop by the College on your way home from work and take some classes. Enroll in some correspondence courses. Do something about your situation. It worked for me and it works for just about anybody that gives it a shot and puts forth an effort. But back to the bigger point...as long as you live in a capitalistic society, you will have the haves, the have nots, and the in-betweens. That is the society that we live in. Everybody can't be rich, they can't all have the same luxuries. It's a hard fact, but it is a fact. There was a time when, if you were born poor or minority, you stayed that way. Not anymore. If this kind of setup isn't to your liking, then that is a choice too. Other countries have other systems. They are a ticket and a plane ride away. I just wonder who the men and women who founded this Country blamed everything on. Who did they blame when a hurricane came through? Who bailed them out when they had a bad crop year? If their horse died, who got them a new horse. When they had a drought and couldn't afford to buy the hay to feed their cattle, who sent them a check to keep them going? When times got tough and the saloon owner was going under, (never happened) did the goverment run to his aide with a big fat low interest loan to get him through the tough times? maybe throw in a few food stamps so he could get his food for free....I know I have went on a rant here and for many it falls on deaf ears, but we need to take a long hard look at the direction this Country is headed. We have allowed the goverment to control almost every aspect of our lives. I pay almost half what I earn in taxes, fees, permits, fines, licenses, fines, penalties etc., etc., before I get to keep a damn penny. We are hocking this Country into financial failure. We have surrendered our freedoms for the luxury of having the goverment "handle" things. Think about it. It's true. Off the soapbox now.

Edited April 2, 2008 by badndn

[Last Resort]

"A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship."

[Pop]

Ed, what I do not want is my tax dollars subsidizing big oil on the cusp of record profits. Subsidy should satisfy some urgent and temporary condition and I'm hard pressed to find either in todays oil industry. Any commodity industry that finds increased profits in reduced product and / or higher demand has my ear in times of plenty when the nation is rising and the abundance of the commodity threatens the industry- when gummint is fully funded and commodity prices are depressed due to oversupply or reduced demand then commodities need to be assisted to maintain viablity since they are integral to the strength of the nation. When gummint is in deficit, the state of the economy, no matter what you choose to call it is in the red then it is the height of beaurocratic grift and incompetance to be offering the oil compnies 1.6 billion a year to "develop domestic markets".

You bet I'm complaining. This is my money and I can think of more than a few places it could go to greater effect in my life than adding to the 120 billion dollar profit pot the oil companies enjoyed last year. If these mammoth multinationals that wave the American flag in front of their US operations had one fucking iota of a sense national pride then they would be proudly (and public relationswise smartly) making a show of returning every penny of that subsidy. It is the height of a corporate sense of entitlement to stand up in the Congress of the United States and defend feel good gimmees before the people. Don't get me wrong. It's the slimy politics of the jackanapes that occupy the peoples payroll in Congress and the Whitehouse that voted for this program to begin with. It doesn't take a rocket scientist to figure out how congress passed a bill offering subsidies to the Fortune 100.

Defending hard work and rising up by the bootstraps is fine. Don't mistake this for either.

[bluesky1]

Only one problem with the oil company tax issue and that is the current tax "breaks" they are stretching out for 10 years....the amount is $18billion. A drop in the bucket for the billions in profit. The breaks should have been dropped when the profits hit the roof. They claim they need these breaks to push exploration and I would say, take it out of your own pocket or don't explore......someone else will. And that is all about taxes.......our company squeaks by on 6% margin and doesn't get the tax breaks Exxon does.

 

Once again, any decrease in the current tax breaks to oil companies will show up in higher prices at the pump.

 

You say your company squeaks by on 6% margins - does anyone know what Exxon's margins are? (I don't, I'm asking) My guess is it is not excessive - they are making huge profits because they sell huge volumes, but what are their margins?

[bluesky1]

as for the man controlling more--the government has actually grown more in the last 8 yrs than ever before...not all in good ways...fuckin republicans.

eric

 

IMHO it is impossible for the government to grow in a good way - shrinking is the only thing the government can do in a positive direction.

[bluesky1]

on taxes, i was actually talking about taxes at the pump--that adds straight to the price..

 

the individual will always end up paying taxes in any system---the amounts passed on the individual may vary?? there's "x" amount of money needed to run government...in general terms, the bigger burden is passed on to those who can afford to pay more.

 

the true solution would be to figure out exactly what is needed after all the fat is cut and have a 0 balance at the end of the fiscal year--that'll never happen...so you either have to tax individuals more or tax corporations more or both...a flat tax won't work in the ideal situation (where there is a 0 balance) because some won't ever pay--can't squeeze apple juice from a grapefruit....

eric

 

It doesn't matter if the taxes are added at the pump or embedded in the selling price (true of all purchases, not just gas) the end consumer pays all taxes - they are all passed on by the corporations. Why is this such a difficult concept. The amount won't vary, the entire tax plus the cost burden to track their taxes and file their taxes and store the information in case of an audit - are all passed on to the end consumer. That is the simple fact of good business - all associated cost must be figured into the cost of the product to determine the selling price of the product.

 

If you ever hope to everyone paying their fair share get behind the Fair Tax proposal (Not the flat tax - it has been tried, but will never work due to lobbyist and political agendas)Fair Tax Website

[indian terry]

WHO THE F--K OWNS THE OIL THAY PUMP ANYWAY -----THE PEOPLE OF THE STATES----THE OIL CO'S JUST STICK A HOLE IN THE GROUND AN TAKE IT---THEN EXTORTS US FOR ALL WERE WORTH ----THAY AINT SPENDING JACK SHIT ON

NEW ENERGY SOURCES OR THE DESERTS WOULD BE FULL OF SOLOR PANELES AND WE WOULD BE DRIVING HYDOGEN

CARS ----POLUTION SOLVED----GLOBAL WARMING SOLVED---IF IT REALLY EXISTS, DO TO FOSSIL FUELS---

WHAT EVER HAPPENED TO MAKING A DECENT PROFIT AND DOING A GOOD SERVICE FOR YOUR FELLOW MAN---

JUST LIKE ITS UNETHECAL AND ILLEGAL TO TAKE ALL THE WATER RUNNING DOWN HILL ACROSS YOUR LAND AND EXTORTING THE PEOPLE DOWN STREAM 4 IT JUST BECAUSE YOU CAN , OIL IDIOTS SHOULD NOT BE PERMITED TO RIP ALL THE OIL AND SQUEEZ ALL THAY CAN SO THEY CAN PLAY ON YAHTS AN USE THE EXORBADENT PROFITS TO PLAY IN THE STOCK MARKET ,AN TRY TO MAKE MORE WITHOUT RETURNING MUCH OF THE PROFITS TOWARD FUTURE ENERGY NEEDS OF

THE PEOPLE---THAY ARE GREEDY BASTARDS AND DONT GIVE A SHIT ABOUT THE COUNTRY OR THE FUTURE OF IT ----

WHEN THEIR CHILDREN RUN OUT OF OIL AND THAY SAY --POPS LOAN US SOME MONEY SO WE CAN BUILD SOME SOLAR

AN INVEST IN NEW TECNOLOGY FOR TRANSPORTATIN-AN GROW CROPS---POPS OIL BUCKS WILL SAY ----SORRY SON ----WE LOST IT ON THE STOCK MARKET WHEN IT CRASHED BECAUSE THE WHOLE ECONOMY WENT BUST--- DUE TO THE HIGH PRISE OF OIL ---SO SIT IN UR MC,MANTION POOL AN THE SUN WILL EVENTUALL HEAT THE 10,000 SQ. FT SUCKER---

[bluesky1]

Once again, any decrease in the current tax breaks to oil companies will show up in higher prices at the pump.

 

You say your company squeaks by on 6% margins - does anyone know what Exxon's margins are? (I don't, I'm asking) My guess is it is not excessive - they are making huge profits because they sell huge volumes, but what are their margins?

 

 

OK took 30 seconds and looked it up - 9.8%. I hate the high pump prices as much as anyone else, but that is not an excessive margin. The government makes more on every gallon than the company that explores for and drills the oil, then refines the oil and then delivers the product to the pump - and all they have to do is extort the company that does all the work (Kinda Sopranoesque)

 

All of you calling for elimination of their current tax breaks and even implementation of additional punitive "windfall" taxes on their profits should think about that. And once again - all those additional taxes will be paid by ourselves every time we fill up. It is really just common sense if you really think about it.