Saturday, October 29

Exxon Record Profits is Great News!

Despite the fools in the media, and all around the country, that may be calling Exxon's record profits "absurd" and "profiteering," allow me to do a quick Economics lesson 101. Profits attract competition. Competition brings prices down. Competition improves the market, product quality, and benefits everyone overall. So, why are they complaining? Because for some people, it's easier to complain about the evil corporations, than to know the facts and speak truth. I think people like to complain about this sort of thing out of self-righteous pride.

Taxing the energy industry is NOT going to help anyone. While it will hurt the energy industry, the true victims will be the consumer, who will face higher prices. Let Exxon enjoy its profits. I would welcome further deregulation, encourage further competition, and facilitate the building of new refineries. Let's send the extremist enviro-nazis back to the looney bin they came from. Maybe then we can start seeing some progress in this nation in the area of energy. It is absurd to me that in a modern, creative, nation as ours, we are having so much trouble getting low-cost energy. It certainly is not the energy company's fault.

Put the blame where the blame goes--over regulation motivated by extremist environmental interests and socialist-based ideals. They don't work, and they don't help anyone. It just doesn't make sense.

Economist Carol Dahl, an energy economics professor at the Colorado School of Mines commented in a Friday Denver Post article saying, "If you have a commodity in short supply, and if you let the market function, that will raise prices and help allocate supply. It's a way for the market to get to equilibrium."

In other words, what she is saying is that if it wasn't for the higher prices, you would be getting long lines at the pump, and shortages all over the country. The energy companies did their job, the price fluctuations did their job, and as a result, there was little-to-no interruption of fuel supply nation wide. That is a good thing and it is how it's supposed to work.