Let me just start by saying, liberal politicians have got to be the most retarded people on earth.
Of course, we all knew that already, and of course conservative politicians are close behind them, but still…
The latest thing is, the Democrats (not to be mistaken with the word “democracy,” as they have nothing to do with each other) have decided that big companies, particularly U.S. oil companies, have made “too much profit.”
Let’s look at the facts.
1. Companies exist to make money.
2. Demand drives prices under a capitalist system.
3. Everybody in the world wants oil.
4. One particular oil company isn’t trying to “gouge” anyone, because no one wants to price themself out of the market.
5. Oil companies, at least the smart ones, are investing a crapload of money into research and development of alternative energy solutions, because they know their days are numbered.
6. Taking money away from them will reduce their ability to do R&D.
7. Less R&D means a huge crisis looming sometime in the future.
The lessons transfer almost perfectly to pharmaceutical companies… more profit means more R&D, more R&D means more cures, and how could more cures be bad for anyone? Yes, they are subject to a lot of lawsuits, which is why today there is only 1 remaining manufacturer of flu vaccines in the United States. Speaking of cutting off your nose… And the Democrats are trying to block Bush’s attempt to shield pharmaceutical companies from insane lawsuits. (i.e. The person hurt or killed by a drug reation only had a lifetime earnings potential of 1 million dollars, but the plaintiff is awarded 50 billion gajillion dollars for punitive damages.) So basically, we want to punish drug companies for leading the effort of finding cures. Smart.
So back to big oil. Yes, several oil companies did very well in the last year. Some of them made as much as 9 billion in profits in a single quarter.
Good for them. In the process, they employ millions and millions of Americans, they increase the wealth of investors like me an you, and they provide something to us that we need… not to mention cutting into the amount of oil we have to buy from the middle east. Another advantage.
So the Democrats want a “windfall” tax. In other words, if your company makes “excessive profits” you are subject to a huge additional tax.
Personally, I hope to eventually make “excessive profits” whatever the hell that means. If companies exist to make profits AND maximize shareholder value, then how can we even entertain the thought of penalizing them for being successful?
It’s an idea that only a socialist Democrat could come up with, and hopefully the Republican congress will crush it like the cockroach that it is.
The day we’re limited on the amount of profit we can make (by anything besides supply and demand), that’s the day I’ll be moving my company out of the country. You can’t impose penalties for success. It’s contrary to everything the founding fathers intended when they came here.
This is a capitalist free market society, and I don’t remember there ever being a vote to change that… do you?