Value added, and subtracted…
In this episode, Raymond J. Leary tells us that high oil prices are being caused by OPEC collusion, and the piggybacking of this collusion by the oil companies.
It is OPEC’s collusion that is a primary cause of oil’s price escalation. Our oil companies are piggybacking on OPEC’s actions to ever higher profits, profits unearned in a competitive free market sense, but profits that are simply the fallout of a cartel’s supply and price manipulation. The question needs be asked, since we are paying the end price at the pump and the heating oil tank, do those artificially created oil profits really belong to the oil companies or the nation as a whole? Huffington Post
Mr. Leary, now in an uproar, continues:
The oil companies, unlike industries that create products that broaden the landscape and enhance lives, are simply bystanders adding little or nothing to their product line or the general welfare. They are merely the toll collectors for ever higher cartel induced oil prices. One could even suggest their function, given the misinformation they propagandize on so may aspects of the oil market hoping to anesthetize our reaction to the choke hold of the industry and its OPEC brethren on our pocketbooks, and our national security that their contribution to the nation’s well being is far more negative than generally understood. Huffington Post
He supports Barack’s pledge to impose a, “windfall profits tax,” on the oil companies to capture a portion of these unusually large profits to government coffers, quoting the Senator, “I’ll make oil companies like Exxon pay a tax on their windfall profits, and we’ll use the money to help families pay for their skyrocketing energy costs and other bills,”
Now, I should make clear at the outset, we are not friends of Big Oil, any more than we are friends of Big Finance, Big Coal, and, Big Business in general. But when we read that Big Oil doesn’t add to the value of their product, and, only operates as, “toll collectors for ever higher cartel induced oil prices,” we just have to protest.
What value is added by taxing Big Oil?
That’s right, taxes don’t add to the value of produced goods. But, they do add to the cost of those goods – a cost that would be borne by us, if the windfall profits tax is imposed, at the pump.
So, the argument of Obama supporters like Mr. Leary boils down to this: “We’re going to rip off the rip off artists, and, give the money to the needy. In the end this will cost you some at the pump, but we believe you will ultimately benefit”
Robin Hood returns as a government bureaucrat.
Quite frankly, for all that is good in the heart of Mr. Leary, we have a problem with this.
What about the other 33 percent of the economy the government already spends on such “necessary” items as, sending boy toys to Mars, earmarks, and, of course, that old reliable standby, murdering Afghanis and Iraqis.
Oh…okay, that doesn’t count. Right?
Still, Mr. Leary does have a point: those evil sheiks at OPEC did cause these high gas prices.
Excuse me…I am getting an update…
Ladies and Gentlemen, it appears OPEC did not cause higher gas prices.
It appears higher gasoline prices were, in fact, produced by your government printing billions of dollars to bail out the investment banks.
Yes … it is confirmed … Washington sacrificed the dollar to pull Wall Streets chestnuts out of the fire.
When the dollar fell, as a result of this bailout, gasoline prices had to rise. So, it appears government (in the form of the Moron and his crew) not only caused higher gasoline prices, it (in the form of Mr. Obama and his supporters) would also like to add to that cost, under the wholly honorable, but delusional, view it has something more important to do with your pocket change than you do.