Obama eyes active role in oil markets - Yahoo! News
There's no doubt that big oil companies are making recording profits in the billions... BUT, it also costs billions and billions for them to find oil in ever-harder-to-reach places, extract it from the ground, transport it, refine it, and then sell it. If you think a corporation is making too much money, don't complain - INVEST in them!
Here's an ECON 101 concept: If you want prices to come down, increase the supply. Creating DISINCENTIVES (in the form of higher taxes), is not how you attract the new capital needed to increase supply.
And while it may be politically easy to say Big Oil should pay an extra"windfall tax", which other companies may be subject to "windfall taxes" in the future? Google? Microsoft? Microsoft has been opening offices in India, they make lots of profits, let's PUNISH them!
What I find interesting, is that the Democrats have attacked McCain for saying economics was not his strongest subject. At least he has the humbleness to say so. Clinton and Obama have both shown through their proposals that they don't really understand it either...
Thursday, March 20, 2008
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