Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Profits Of Doom?
IBD ^ | May 1, 2008

Posted on 05/01/2008 6:55:13 PM PDT by Kaslin

Profits: Exxon Mobil's first-quarter earnings of $10.9 billion, up 17% from a year earlier, are stirring outrage in Washington. Some are calling such profits "obscene." What a sad lack of understanding of economics.


Case in point: Presidential candidate Hillary Clinton. Like her rival, Barack Obama, she's pushing a massive "windfall profit" tax on those "greedy" oil companies. "There is something seriously wrong with our economy when Exxon's record $11 billion in quarterly profits are seen as a disappointment by Wall Street," Clinton said Thursday. "This is truly Dick Cheney's wonderland."

No, what's seriously wrong is that politicians such as Clinton can cynically manipulate public opinion to enact disastrous policies.

Indeed, rather than be upset at Exxon's profits, Americans should be thrilled — and angry at a Congress that doesn't seem to want to encourage the oil industry to make even more.

Our free-market economy is built on profit. Higher profits mean more jobs, higher incomes, more investment in equipment and people, higher standards of living. Yes, profits are the engine for all of this — and that includes the profits of "Big Oil."

By signaling that supply is scarce, higher profits encourage more production. Except, that is, when Congress through its inept lawmaking stands in the way. And that's the case now with the oil industry.

(Excerpt) Read more at ibdeditorials.com ...


TOPICS: Business/Economy; Editorial; Politics/Elections
KEYWORDS:
Navigation: use the links below to view more comments.
first 1-5051 next last

1 posted on 05/01/2008 6:55:13 PM PDT by Kaslin
[ Post Reply | Private Reply | View Replies]

To: Kaslin

What’s seriously wrong, is every time you buy gas — you’re paying quite a bit of that money — directly to terrorists.

That’s the problem.

Not profits.

So how about the oil companies help us change that?...


2 posted on 05/01/2008 6:57:21 PM PDT by Cringing Negativism Network (FLEX FUEL NOW! - send your fuel dollars to Kansas, not to Hugo Chavez)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Cringing Negativism Network

How about the domestic ECOFREAKS LET US GO AFTER THE OIL IN THE U.S.?


3 posted on 05/01/2008 6:59:08 PM PDT by Dick Bachert
[ Post Reply | Private Reply | To 2 | View Replies]

To: Kaslin

What nobody ever mentions is that when supply remains static but demand increases, the prices must go up or there will be shortages. If the prices go up, of course the oil companies will make more profits. So what would the populist know-nothings have them do, raise prices and throw the money away?


4 posted on 05/01/2008 7:00:21 PM PDT by lesser_satan (Vote McCain - The Choice who Sucks Less!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin
Sometimes I think only the Investors Business Daily gets it. How screwed up our country really is when profit is “bad”. But here is what really pi$$es me off, these same Dems have trust funds heavily invested in these same “obscene” oil companies. I just hate hypocrisy and that is why I just hate the Democratic party...
5 posted on 05/01/2008 7:02:15 PM PDT by fatez ("If you're going through Hell, keep going." Winston Churchill)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

Excellent


6 posted on 05/01/2008 7:02:47 PM PDT by Eagles6 ( Typical White Guy: Christian, Constitutionalist, Heterosexual, Redneck)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Dick Bachert

Last time I bought a CD (which was a couple years ago, because I don’t like paying money to liberals), the CD was almost $20.

$20. For a tiny slab of plastic. And movie ticket prices - don’t even get me started.

I think it’s high time to start charging hollywood studios, a “windfall profits” tax.

“Big cd”, and “Big movie” can pony up some of their bucks. And “Big lawyers” too. They’re pretty greedy.

How about a cap on liability lawyers fees.

And how about “Big tv”. Bunch of whining greedballs.

If it’s just greed we’re taxing, seems to this poster liberals are (over-) represented in that group.

This could be fun... :)


7 posted on 05/01/2008 7:05:52 PM PDT by Cringing Negativism Network (FLEX FUEL NOW! - send your fuel dollars to Kansas, not to Hugo Chavez)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Dick Bachert

I talked to a lib today and they are totally convinced that if we began to drill now, it would take us 20 years to get oil..Yeesh.


8 posted on 05/01/2008 7:08:28 PM PDT by Recovering Ex-hippie
[ Post Reply | Private Reply | To 3 | View Replies]

To: Kaslin

With every rise in the price of gasoline, Washington finds what we will pay to get around in our cars.
Whatever “alternative fuel” is created to replace gasoline, if cheaper, will be taxed according to the price of gasoline prior to that replacement.


9 posted on 05/01/2008 7:10:51 PM PDT by Crawdad (If you're in a fair fight, your tactics suck.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

But have the profit margins increased? I hear that the margins have not been increasing just the gross revenues. New refinery capacity may be lagging due to very low profit in making gasoline and not just to the Enviros. Anyone have some good numbers?


10 posted on 05/01/2008 7:11:16 PM PDT by Klondike
[ Post Reply | Private Reply | To 1 | View Replies]

To: Klondike

The problem is, Bush really does seem to be in the pocket of the oil companies.

I know, that’s a liberal screed. But fact is, he’s really not doing much about the situation. He’s the one with the bully pulpit. He could be out there, making the case for more drilling, making the case for new sources of energy.

How can one conflict in Iraq, so utterly immobilize a presidency, which once seemed so right?

He’s not doing any of that.

In fact, he’s doing just about NOTHING.

At least print up some “W.I.N.” buttons or something.


11 posted on 05/01/2008 7:14:42 PM PDT by Cringing Negativism Network (FLEX FUEL NOW! - send your fuel dollars to Kansas, not to Hugo Chavez)
[ Post Reply | Private Reply | To 10 | View Replies]

To: Cringing Negativism Network

Did you miss his statements THIS week?


12 posted on 05/01/2008 7:19:25 PM PDT by goodnesswins (20 is the new 10)
[ Post Reply | Private Reply | To 11 | View Replies]

To: goodnesswins

I guess I did miss what President Bush said this week. At work mostly...

What did he say?

And what’s he doing, more importantly?

I keep waiting for him to get riled up again, like when he had all the firemen gathered around, chanting “USA! USA! USA!”.

Come on Sir. Everyone’s really mad.

Harness that! America wants a purpose. We’re not going to the moon anymore. We’re shipping all our factories to a bunch of communists. We squabble over our shrinking slice of the pie, more every day.

Let’s make this the next big thing.

The next Apollo! All we do in bicker and complain. Let’s DO SOMETHING.

100% American Energy Independence — in 5 years!

Not one day less.


13 posted on 05/01/2008 7:24:02 PM PDT by Cringing Negativism Network (FLEX FUEL NOW! - send your fuel dollars to Kansas, not to Hugo Chavez)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Cringing Negativism Network
So how about the oil companies help us change that?...

Vote for a conservative Republican representative and senator in November. Perhaps we can get the federal government off the backs of the oil companies so they can develop domestic supplies. It isn't that they don't want to develop those supplies. It is the green freaks and their willing accomplices in the Democratic party that keep passing onerous regulation and banning access to domestic supplies. Place the blame where it belongs and do something about it in November.

14 posted on 05/01/2008 7:25:34 PM PDT by Myrddin
[ Post Reply | Private Reply | To 2 | View Replies]

Er. Strike that:

“Not one day more!!”.

I hate it when that happens... :)


15 posted on 05/01/2008 7:28:31 PM PDT by Cringing Negativism Network (FLEX FUEL NOW! - send your fuel dollars to Kansas, not to Hugo Chavez)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Cringing Negativism Network
You seem predisposed to jumping right next to Hillary and engaging in punitive taxation of other people. That's the wrong approach. Remove the taxes and restrictive regulations. Turn the business community loose to do their best without the impediment to onerous government involvement.
16 posted on 05/01/2008 7:28:41 PM PDT by Myrddin
[ Post Reply | Private Reply | To 7 | View Replies]

To: Klondike
But have the profit margins increased? I hear that the margins have not been increasing just the gross revenues. New refinery capacity may be lagging due to very low profit in making gasoline and not just to the Enviros. Anyone have some good numbers?

Margins are lower than in the past. Factor in the falling dollar and their profits are dropping.

17 posted on 05/01/2008 7:30:55 PM PDT by Myrddin
[ Post Reply | Private Reply | To 10 | View Replies]

To: Myrddin

Forget taxation.

Let’s get America on track to Energy Independence!!

WHY MUST WE ALWAYS PAY FOREIGNERS FOR WHAT WE NEED?

We pay communist Chinese for ... well everything anymore.

We pay communist Hugo Chavez for oil.

We pay terrorists for oil.

All we do is pay people, who want us dead.

WHAT IS WRONG WITH THIS PICTURE?

Why in the world, is everyone so complacent??


18 posted on 05/01/2008 7:30:56 PM PDT by Cringing Negativism Network (FLEX FUEL NOW! - send your fuel dollars to Kansas, not to Hugo Chavez)
[ Post Reply | Private Reply | To 16 | View Replies]

To: Cringing Negativism Network
"I think it’s high time to start charging hollywood studios, a “windfall profits” tax."

Fuggetabotit...check out the popcorn!

Movie theatre popcorn has been a huge rippoff for years, imagine now that the Ethenol industry is taking over the nation!!!

$10 gas??? $10 popcorn will ruin the movie industry!!!!

19 posted on 05/01/2008 7:37:32 PM PDT by Positive (Nothing is sadder than to see a beautiful theory murdered by a gang of brutal facts.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Kaslin
"There is something seriously wrong with our economy when Exxon's record $11 billion in quarterly profits are seen as a disappointment by Wall Street," Clinton said Thursday

This from a woman who made over 120 million dollars in the last seven years.

20 posted on 05/01/2008 7:39:01 PM PDT by Texas Eagle (Could pacifists exist if there weren't people brave enough to go to war for their right to exist?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin
At least what ExxonMobil produces gets me from Point A to Point B.

All I get from what Her Royal Heinous produces is acid reflux.

21 posted on 05/01/2008 7:40:27 PM PDT by Texas Eagle (Could pacifists exist if there weren't people brave enough to go to war for their right to exist?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Recovering Ex-hippie

In what region? There are some areas that could see production in a few years.


22 posted on 05/01/2008 7:40:29 PM PDT by P-40 (Al Qaeda was working in Iraq. They were just undocumented.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Texas Eagle

Rather than attack each other,

How come as a country, we’re not doing something??


23 posted on 05/01/2008 7:40:42 PM PDT by Cringing Negativism Network (FLEX FUEL NOW! - send your fuel dollars to Kansas, not to Hugo Chavez)
[ Post Reply | Private Reply | To 20 | View Replies]

To: Kaslin

I wonder what the profit margin was on her little cattle futures trading venture.


24 posted on 05/01/2008 7:45:14 PM PDT by tacticalogic ("Oh bother!" said Pooh, as he chambered his last round.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Cringing Negativism Network
Rather than attack each other, How come as a country, we’re not doing something??

Amen, Bro.

Start drilling in Alaska, North Dakota and Wyoming. That will cause prices to drop in a heartbeat.

25 posted on 05/01/2008 7:45:18 PM PDT by Texas Eagle (Could pacifists exist if there weren't people brave enough to go to war for their right to exist?)
[ Post Reply | Private Reply | To 23 | View Replies]

To: Texas Eagle

And then?...


26 posted on 05/01/2008 7:46:00 PM PDT by Cringing Negativism Network (FLEX FUEL NOW! - send your fuel dollars to Kansas, not to Hugo Chavez)
[ Post Reply | Private Reply | To 25 | View Replies]

To: Cringing Negativism Network

And then we have more control of our own destiny.


27 posted on 05/01/2008 7:47:42 PM PDT by Texas Eagle (Could pacifists exist if there weren't people brave enough to go to war for their right to exist?)
[ Post Reply | Private Reply | To 26 | View Replies]

To: Texas Eagle

And then?...


28 posted on 05/01/2008 7:48:00 PM PDT by Cringing Negativism Network (FLEX FUEL NOW! - send your fuel dollars to Kansas, not to Hugo Chavez)
[ Post Reply | Private Reply | To 27 | View Replies]

To: Cringing Negativism Network

What do we do with our destiny, when we gain more control of it?

Sell it to China again?...

What?

What are we as a nation, doing to become better? Stronger? More intelligent? More ... just about anything?

Seems we’re seriously losing control. We’re selling everything which isn’t bolted down - and even some of that.

We really need to start kicking *ss and taking names again.

We’re ... what was it Jimmy Carter said?

Malaise.

That’s what it is. We’re just that.


29 posted on 05/01/2008 7:51:38 PM PDT by Cringing Negativism Network (FLEX FUEL NOW! - send your fuel dollars to Kansas, not to Hugo Chavez)
[ Post Reply | Private Reply | To 28 | View Replies]

To: Cringing Negativism Network

And then we drill in The Gulf of Mexico.


30 posted on 05/01/2008 7:51:52 PM PDT by Texas Eagle (Could pacifists exist if there weren't people brave enough to go to war for their right to exist?)
[ Post Reply | Private Reply | To 28 | View Replies]

To: lesser_satan

They would be happiest if the oil industry operated like the airline industry — hasn’t made a nickel in profits since the Wright Flyer first took to the skies. Of course, that would stifle technical innovation, but who cares? They would be “punished.”


31 posted on 05/01/2008 7:52:01 PM PDT by ProtectOurFreedom
[ Post Reply | Private Reply | To 4 | View Replies]

To: Texas Eagle
This from a woman who made over 120 million dollars in the last seven years.

A windfall profit tax on her windbag husband would be a good start. Not to mention the financial relationships the bent one has with the Saudis. That could be quite a conflict of interest for the smartest woman.

32 posted on 05/01/2008 7:52:21 PM PDT by Myrddin
[ Post Reply | Private Reply | To 20 | View Replies]

To: Cringing Negativism Network

How dare you ask Oil Companies to put America before profits.

They are making a lot of money so you can have a job, if they have to give money to terrorists to keep their profits up, who are you to tell them otherwise.


33 posted on 05/01/2008 8:12:43 PM PDT by Philly Nomad
[ Post Reply | Private Reply | To 2 | View Replies]

To: Philly Nomad

I dunno about other FReepers, but I’m getting just sick, of this globalist cr*p.

I want to be in that circle of fired-up firemen rallying around President Bush, yelling in genuine, heartfelt enthusiastic pride in America:

“USA! USA! USA!”.

Instead, we get NAFTA. Chinese trade deficits. Jobs exported. No border. And it gets worse every day.

God help America.

Please.

What in the world happened to us?


34 posted on 05/01/2008 8:16:55 PM PDT by Cringing Negativism Network (FLEX FUEL NOW! - send your fuel dollars to Kansas, not to Hugo Chavez)
[ Post Reply | Private Reply | To 33 | View Replies]

To: Kaslin
Hurricane? Record profits!

Dictator farts? Record profits!

Price per barrel goes down? Record profits?

Price goes up? Record profits!

Before China develops? Record profits!

China Developing? Record profits?

Shortage? Record profits!

War? Record profits!

Refinery fire or repairs? Record profits!

In the springtime, in between time? Record profits!

Price controlled by government? Of course not! But price by late October? Lower! But first have to increase, so it can be lowered!

Either way, record profits!

35 posted on 05/01/2008 8:21:18 PM PDT by purpleraine
[ Post Reply | Private Reply | To 1 | View Replies]

To: purpleraine

There are sure a lot of people running around, including on this board, without the least bit of understanding of economics.

Pitiful.


36 posted on 05/01/2008 8:41:48 PM PDT by bballbob
[ Post Reply | Private Reply | To 35 | View Replies]

To: bballbob

I’ll say. Some actually think that oil and gasoline are produced in a free, capitalistic market. There’s one born every day.


37 posted on 05/01/2008 8:43:03 PM PDT by purpleraine
[ Post Reply | Private Reply | To 36 | View Replies]

To: Cringing Negativism Network

“He could be out there, making the case for more drilling..”

You mean like he was doing within the past couple of days? Like he’s done a number of times over the past 7+ years?

Perhaps you haven’t heard him because you don’t listen to him. Who do you listen to?


38 posted on 05/01/2008 8:49:04 PM PDT by Rembrandt (We would have won Viet Nam w/o Dim interference.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Crawdad
Whatever “alternative fuel” is created to replace gasoline, if cheaper, will be taxed according to the price of gasoline prior to that replacement.

Kind of like how the price per Kwh mysteriously negates all those Energy Star "savings".

39 posted on 05/01/2008 8:49:54 PM PDT by Ezekiel
[ Post Reply | Private Reply | To 9 | View Replies]

To: Rembrandt

Oh I see.

I’m mad because nobody is doing anything to fix the problem, so ... my motives are questionable.

Is that it?


40 posted on 05/01/2008 8:50:33 PM PDT by Cringing Negativism Network (FLEX FUEL NOW! - send your fuel dollars to Kansas, not to Hugo Chavez)
[ Post Reply | Private Reply | To 38 | View Replies]

To: Kaslin

Everyone who owns stock in the oil companies, directly or through an investment fund, is making a profit on oil. That means my IRA, your retirement plan in all likelihood, and your Aunt Fannie’s investment portfolio that you’re hoping will one day be all yours. It doesn’t look as sinister when you look at it that way.


41 posted on 05/01/2008 9:06:02 PM PDT by Humble Servant ( Keep it simple - do what's right.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Cringing Negativism Network

” ...I think it’s high time to start charging hollywood studios, a “windfall profits” tax.

“Big cd”, and “Big movie” can pony up some of their bucks. And “Big lawyers” too. They’re pretty greedy....”

My big bugaboo is the cost of a University Ed-You-Kayshun. I want to see a plot of the growth of tuition against gasoline from 1965 to today. Somebody reading this has the ability and nothing better to do than put it together.


42 posted on 05/01/2008 9:09:27 PM PDT by Humble Servant ( Keep it simple - do what's right.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Cringing Negativism Network

“I’m mad because nobody is doing anything to fix the problem, so ... my motives are questionable.”

I agree, your motives ARE questionable. Bush has tried a number of times to initiate efforts to address energy shortages and has been stymied each time by a Congress dominated and controlled by idiot Dimocratz.

You are parroting the lines of the Dimocratz - yes, your motives are questionable.


43 posted on 05/01/2008 9:20:23 PM PDT by Rembrandt (We would have won Viet Nam w/o Dim interference.)
[ Post Reply | Private Reply | To 40 | View Replies]

To: Kaslin
Profits: Exxon Mobil's first-quarter earnings of $10.9 billion, up 17% from a year earlier...while the price of oil, the product they sell, is up well over 20% since last year - as a percentage of costs, their profits have actually fallen.....'rats hate big oil because they believe it provides funding for the Republicans - but it's time someone took a good look at who helps fund 'rats and might want to see big oil crippled, like maybe George Soros who's been working on a big pipeline deal to pump Russian oil down through the general region of Iran and Iraq, if I remember correctly.......
44 posted on 05/01/2008 9:21:48 PM PDT by Intolerant in NJ
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rembrandt

No offense intended, but you seem brainwashed.

It’s clear, nobody is really trying very hard to fix this.

There are too many people making too much money, for this to be fixed. Same with so-called “free trade”.

Anything for a few (rapidly depreciating) dollars more...

Problem is, the eventual outcome seems to be, America will collapse economically.

I’m parroting nobody.

I’m worried for my country.


45 posted on 05/01/2008 9:23:25 PM PDT by Cringing Negativism Network (FLEX FUEL NOW! - send your fuel dollars to Kansas, not to Hugo Chavez)
[ Post Reply | Private Reply | To 43 | View Replies]

To: Kaslin

Libs aren’t interested in facts, only feelings. We err here in arguments that are fact based. Better to use their own tactics. Instead argue to them that, if they want to impose windfall profit taxes, it’s only “fair” to grant a similar rebate if/when a company incurs a loss. Fairness demands balance. Then watch their argument crumble.


46 posted on 05/01/2008 9:33:40 PM PDT by pyrless
[ Post Reply | Private Reply | To 1 | View Replies]

To: Cringing Negativism Network

Michael Medved had stated on his show that we actually get the majority of our oil from Canada and Mexico.


47 posted on 05/02/2008 12:15:13 AM PDT by TheThinker (Capitalism is the natural result of a democratic government.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Kaslin

bttt


48 posted on 05/02/2008 2:53:51 AM PDT by PogySailor (Murtha'd: To be attacked by a corrupt politician for doing your job.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Cringing Negativism Network
The problem is, Bush really does seem to be in the pocket of the oil companies.

Interesting, from the administration's active efforts to maintain the porous state of our border with Mexico I would have sworn he was in the pocket of "Big Marajuana" or "Big Meth".

49 posted on 05/02/2008 5:12:36 AM PDT by The Duke (I have met the enemy, and he is named 'Apathy'!)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Cringing Negativism Network

Firemen have union jobs which can’t be outsourced - globalism is good for them.

This is just the continuation of the maturation of the world economy since the 1970’s. First it was union jobs in the NorthEast and Midwest which moved to Japan and the Southern States. Now the Jobs in Japan and the Southern States are moving to China. In a few years, those jobs in China will move to SE Asia and the Philippines.

The open borders is just an example of globalism, if investments and products can flow freely from one country to the next, then so should labor.


50 posted on 05/02/2008 7:50:16 AM PDT by Philly Nomad
[ Post Reply | Private Reply | To 34 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson