Thursday, February 01, 2007
Exxon Mobil today announced earnings for 2006 at over $35 billion. There is no mystery to high gas prices; just look at $35 billion and that should answer any question as to why gas prices are so high. Even as crude oil prices tumbled in late 2006, prices at the pump did not always fall at the same rate.
This is a classic example of how a corporation’s interest often conflicts with the interests of the country. When this happens government regulations need to exist to curtail the corporation in question. Exxon Mobil could easily contribute to crushing our economy by charging whatever it wants for gasoline products in 2007. What can the government do to prevent these corporate giants from negatively impacting society? Turn them into nonprofits.
I am not in favor of what Chavez is doing in Venezuela but I respect his motives. At least he will not allow a thieving oil company to suck money out of his middle class. But nationalizing something like oil could also lead to government corruption. In my opinion, any market which is deemed needed for the survival of the country or its people should be made into a nonprofit market.
Examples of where nonprofit entities are needed include: hospitals, drug companies and other health care facilities, utilities such as electricity, gas, water, and sewer, gasoline companies like Exxon Mobil, banking services including loans and interest on debt. Just think about how good our life would be if we could all afford healthcare and did not have to pay exorbitant interest rates. Just those two items alone would make life better for all of us overnight.
Am I suggesting Best Buy be forced into nonprofit status? Absolutely not. There is nothing wrong with earning profits because the consumer chose one product over another. But when there is no choice or when the market is rampant with collusion or when you cannot afford life saving drugs or treatments because they are too expensive, the consumer needs protection.
Imagine taking that $35 billion and giving it back directly to the drivers of automobiles. Imagine taking the $600 million Ameren earned in 2006 and giving it back to the families in the St. Louis area. Ameren actually is seeking a rate increase this year, like $600 million was not enough money.
How much is enough? The answer to this question, there is never enough for them. If they earn $35 billion this year they are going to want $50 billion next year. This cycle will continue until this beast consumes everything around it. This is the problem with capitalism and why certain markets must be regulated. As long a product has plenty of substitutions, capitalism and the free market system will be successful. But when smaller companies are allowed to merge into bigger companies to create monopolies and energy companies are not regulated, they will run wild and consume everything.
This is a classic example of how a corporation’s interest often conflicts with the interests of the country. When this happens government regulations need to exist to curtail the corporation in question. Exxon Mobil could easily contribute to crushing our economy by charging whatever it wants for gasoline products in 2007. What can the government do to prevent these corporate giants from negatively impacting society? Turn them into nonprofits.
I am not in favor of what Chavez is doing in Venezuela but I respect his motives. At least he will not allow a thieving oil company to suck money out of his middle class. But nationalizing something like oil could also lead to government corruption. In my opinion, any market which is deemed needed for the survival of the country or its people should be made into a nonprofit market.
Examples of where nonprofit entities are needed include: hospitals, drug companies and other health care facilities, utilities such as electricity, gas, water, and sewer, gasoline companies like Exxon Mobil, banking services including loans and interest on debt. Just think about how good our life would be if we could all afford healthcare and did not have to pay exorbitant interest rates. Just those two items alone would make life better for all of us overnight.
Am I suggesting Best Buy be forced into nonprofit status? Absolutely not. There is nothing wrong with earning profits because the consumer chose one product over another. But when there is no choice or when the market is rampant with collusion or when you cannot afford life saving drugs or treatments because they are too expensive, the consumer needs protection.
Imagine taking that $35 billion and giving it back directly to the drivers of automobiles. Imagine taking the $600 million Ameren earned in 2006 and giving it back to the families in the St. Louis area. Ameren actually is seeking a rate increase this year, like $600 million was not enough money.
How much is enough? The answer to this question, there is never enough for them. If they earn $35 billion this year they are going to want $50 billion next year. This cycle will continue until this beast consumes everything around it. This is the problem with capitalism and why certain markets must be regulated. As long a product has plenty of substitutions, capitalism and the free market system will be successful. But when smaller companies are allowed to merge into bigger companies to create monopolies and energy companies are not regulated, they will run wild and consume everything.
posted by DarthImmortal at 9:32 AM
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