The number one concern of most Americans today is the price of gasoline. With the oil companies making multi-billion dollar profits this past year, petroleum executives are scrambling to defend their earnings and deflect the heat. Chief among their tools are misinformation and outright lies. The “fact” that keeps getting bandied about is that the global economy sets oil prices, not the oil companies. That may be true, but a price does not turn into a profit until costs of doing business are deducted from revenues. In the case of companies like Exxon, their costs of doing business are considerably lower than other global corporations because of a U.S. government subsidy. That’s right, the U.S. government subsidizes companies like Exxon by using the American military to provide security for their overseas operations, including trans-oceanic shipping. If American corporations that wished to operate overseas had to pay private companies to provide their security, then profits would be lower. That same action could also translate into reduced fuel prices for consumers through reduced taxes. The elimination of taxes could be justified by the reduced military budget then necessary once the U.S. stopped policing foreign countries for the benefit of U.S. and multi-national corporations. Of course the expense of the oil companies would increase dramatically, but if their own “facts” are true, gas prices shouldn’t increase, because it is the global economy that dictates the cost of a barrel of oil, not oil companies.
The corporate executives and politicians depend on the ignorance of voters and taxpayers so they can continue shifting wealth from Americans in the lower economic strata to the upper ten percent. Be responsible, listen to what those in power say, do your research, and call them on their mis-statements.
David Blaine [7:40 AM]