Trickle Down Economics
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Posted By: Indian Princess Posted on: Apr. 26, 2006 at 9:53 PM  4 Comments
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I have been wondering when the billions in profits that the oil companies are making are going to trickle down to the end consumer. Unfortunately the reason that trickle down economics doesn't work, is because of greed. The oil companies are only netting approximately 10%, that is not that much. Of course it is, when you consider what we have to pay at the pump. If there was less greed and more compassion (oops, what a liberal idea) the corporations could still make money and the individuals don't have to be struggling to fill their tank up with gas. One million, 400 million, what is a million among friends Can you live that much better the more millions you make. I keep hearing that the government makes more money on oil (gas sales) than the oil companies do. I want to know if this factors in all the tax credits that are given to the oil companies and their investors for drilling costs, etc. Why is it that the tax credits we offer for purchasing hybrid and alternative vehicles are limited, but the tax credits for oil drilling are almost unlimited. We should be encouraging people in this country to become less dependent on oil.
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Apr. 26, 2006 at 10:56:01 PM
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| Did you mean "Trickle On Economics", Indian Princess? Seems like the Average American is getting pissed on and doesn't even realize it. Maybe it's starting to dawn on the Average American at the gas pump, however. Maybe the Greed Merchants have overplayed their hand a little bit? To speedy on the price increases? Hmmmm ... |
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Apr. 27, 2006 at 11:08:10 AM
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| Good, straight thinking, Princess! Anyone who can elicit such a bleat from the BAA Boy must be telling the truth!
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Apr. 27, 2006 at 11:31:03 AM
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| First IP, The oil Companies make a ton more than 8-10% on the price at the pump. If they own the oil field, they get the oil at production cost, about $22/bbl, then they "sell" it to a refinery, that they own, and then they sell it to distributers, who pipe it out and sell it to retailers. Now taking 1 barrel of oil, you get approx. 44 gallons of gas, selling it for $3/gal = $133/bbl just for the gasoline (there are other products also, propane, tar for asphalt) when it costs the oil company $22 to produce. The 8% number is what the retailer makes. Some of the oil they buy is on long term contracts with "friendly" states, like Mexico, and those maybe for a base price plus a % of the strike price ($25 plus 25% of anything over $30) And AA, does Rush Limbaugh actually get 500% markup for his illegal drugs? As for drilling, the problem isn't leftys, or enviors; the problem is us. There is 100 times as much oil off the Florida coast than there is in ANWR, but the people of Florida, and Gov Jeb Bush squashed the idea of drilling for it in 2001. (Hilton and Sheraton would sign off if the oil companies would agree to pay fair market value for all their hotels/resorts in the event of an oil spill, Exxon said no.) The same in California back in 1995. |
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What's the problem. They make 10% actually 8.3 but whos counting. I say they need it for all those years they make nothing. Just because our governemnt won't let them drill, another lie you told here.
Where are we drilling Princess? We aren't, that's part of why we have supply problems. If they had been driling we would have the supply to go with the demand and the price would be down. We have not built a refinery in 30 years in this country, why, the libs fight whenever we try because come lilly might get killed in the process.
If you are a liberal, don't bitch. You should be thrilled we will have to ride more bikes, use more buses and car pool more to save oil. This is what you wanted.
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