Redstate

By ICRJCalvin Posted in Economy — Comments (3) / Email this page » / Leave a comment »

Now that gas is priced at more than $4 a gallon, it is beginning to cause wallet pain in many areas other than the gas pump. Many businesses are also raising the prices of their various services and products because of rising fuel costs. The entire transportation and airline industry are being impacted. It is really no wonder that many people are complaining about the oil companies, especially when they hear reports of oil and gas companies making profits of $86.5 billion last year.

Oil companies are profitable, but are they unreasonably profitable considering the size of the business? Some congressmen are now waving their socialist/fascist colors by calling for their nationalization - as if government control automatically solves any problem. According to economist John Lott, the oil companies - over the last quarter of a century - have paid 300% more in taxes than they have made in profits. Our elected representatives seem to have done their share to increase our prices at the pump.

Last year high-tech companies made $103.4 billion in profits and the financial services industry took in $498.5 billion. Oil companies average making about 8.3 cents in gross profit per dollar of sales. The electronics industry makes about 14.5 cents per dollar. Microsoft makes 27.5 cents per dollar of sales.

Sixty per cent of U.S. oil is imported. The governments in the Middle East, Venezuela, and elsewhere are receiving enormous financial rewards because of our dependency. Expanding economic growth in China, India and other places has driven up the demand for oil. . . . (continue reading at)

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