According to numerous news reports yesterday, the profits of major oil companies rose substantially. Both Shell and Exxon-Mobil had their profits increase by 11%.
Too many people will now argue that those profits are unfair and possibly even the cause of high oil and gasoline prices. They will then conclude that there should be a windfall profits tax levied on the oil companies (but why not on farmers who have been cleaning up lately???).
These arguments will be nothing more than thinly disguised envy: the oil companies got it, I want it, and I don't wanna pay for it.
- Oil and gas prices are, for the most part, the result of competition in the global economy. Phenomenally increased demand is what has driven up oil and gasoline prices. After all, if the oil companies could boost their profits by jacking up oil and gasoline prices, why didn't they do so 20 years ago?
- We all had a chance to get in on this action. We could have bought stock in major oil companies last year if we had wanted to. We have no cause for complaint if we chose not to take the risk.
I think the gubmnt should compensate me for not having bought winning lottery tickets all these years, too.
Update: What'd I say!
Comments