Mellifluous
04-26-2006, 04:15 PM
From Mr. Neal Boortz - I love his website, can you tell? I like the stuff I highlighted in blue- interesting
LET'S NOT BE CONFUSED BY THE FACTS HERE
What we saw yesterday in George Bush's speech on gas prices was rank, pure capitulation. Pandering to the ignorance of the American people. Not one sign of leadership. Just a whimpering submission to the softness that is decaying the American spirit. There's George Bush yesterday sounding more like Jimmy Carter than like a president who is leading his country in a war on terror.
Why these harsh words? Because Bush took the easy way out yesterday. He bowed to the demagoguery of the Democrats and some Republicans. He ordered price-fixing investigations of the oil companies in spite of the fact that there is not one single shred of evidence that any collusion or price fixing is taking place. Over the years there have been many of these investigations. Not once -- not one single time has one of these investigations uncovered any evidence of price fixing by the oil companies.
This was a time for Bush to lead. This was a time for him to step in front of the American people and tell the truth. Educate them! Instead of trying to address the ignorance of the American people on the issue of gas prices, he pandered to that ignorance.
For starters, the president could have told the American people that the federal government doesn't exist to solve every problem in their lives. They live in a country where capitalism, free enterprise and economic liberty have created a standard of living that is the envy of the entire world. If you want to rely on the government to address every problem that arises in your life, then you have to be prepared to give up some of those freedoms.
Here are a few more facts that Bush could have shared in his speech yesterday:
Repeating my first point; even though there have been countless investigations in the past, and even though the Federal Trade Commission has a division that constantly, day after day, scans the nation for evidence, no investigation has ever shown one scintilla of evidence of price fixing in gas and oil.
The oil company profits are not obscene. As of September of last year the total take for local, state and federal governments for each gallon of gas sold was 46 cents. In New York that figure is 63 cents. At the same time gasoline retailers were making about 12 cents on the sale of a gallon of gas. Right now the government take is approaching an average of 50 cents a gallon. Retailers are making about 14 cents. so ... who is making the obscene profit? The local gasoline retailer invests in the community, buys a plot of ground, builds a gas station, hires the employees, pays the local taxes, deals with the local regulatory agencies, and makes a big screaming 14 cents on each gallon sold. Meanwhile, the government steps in without having invested one dime in that facility and takes about 50 cents per gallon. Some obscene profits, right?
As for profit margins ... the amount of money earned for each dollar of sales ... oil companies are nowhere near the top of the list. In 2005 pharmaceutical companies made about 17.6 cents for every dollar of revenue. That, for those of you educated in government schools, that works out to a 17.6% profit margin for the drug makers. How about your local bank? They made about 19.1 cents for every dollar of revenue. Almost a 20% profit! Not too shabby. And what about your household goods and cosmetics? Those companies earned 11 cents on the dollar. A lot of competition there. Now, the oil companies. What did they make? In 2005 the average was 8.5 cents per dollar of revenue. That works out to an 8.5% profit margin.
Maybe President Bush could have said something yesterday about MTBE. Congress recently refused to protect the MTBE makers from liability from frivolous lawsuits. MTBE is a component in gasoline ... and the makers are bailing. MTBE is to be replaced by ethanol .. .but the ethanol producers just can't keep up! This affects supply, and reduced supply in the face of increased demand means what? Higher gas prices? Could we get the ethanol we need from overseas? Why yes! We could! But the Bush administration has a 54 cent-per-gallon import duty on imported ethanol! There's your price gouging! Drop that import duty and I wonder what would happen to gas prices.
It's enough of a problem when Americans suffer from a tragic level of ignorance on issues of basic economics due to generations of state-run education. It's even more tragic when politicians pander to that ignorance for political gain.
LET'S NOT BE CONFUSED BY THE FACTS HERE
What we saw yesterday in George Bush's speech on gas prices was rank, pure capitulation. Pandering to the ignorance of the American people. Not one sign of leadership. Just a whimpering submission to the softness that is decaying the American spirit. There's George Bush yesterday sounding more like Jimmy Carter than like a president who is leading his country in a war on terror.
Why these harsh words? Because Bush took the easy way out yesterday. He bowed to the demagoguery of the Democrats and some Republicans. He ordered price-fixing investigations of the oil companies in spite of the fact that there is not one single shred of evidence that any collusion or price fixing is taking place. Over the years there have been many of these investigations. Not once -- not one single time has one of these investigations uncovered any evidence of price fixing by the oil companies.
This was a time for Bush to lead. This was a time for him to step in front of the American people and tell the truth. Educate them! Instead of trying to address the ignorance of the American people on the issue of gas prices, he pandered to that ignorance.
For starters, the president could have told the American people that the federal government doesn't exist to solve every problem in their lives. They live in a country where capitalism, free enterprise and economic liberty have created a standard of living that is the envy of the entire world. If you want to rely on the government to address every problem that arises in your life, then you have to be prepared to give up some of those freedoms.
Here are a few more facts that Bush could have shared in his speech yesterday:
Repeating my first point; even though there have been countless investigations in the past, and even though the Federal Trade Commission has a division that constantly, day after day, scans the nation for evidence, no investigation has ever shown one scintilla of evidence of price fixing in gas and oil.
The oil company profits are not obscene. As of September of last year the total take for local, state and federal governments for each gallon of gas sold was 46 cents. In New York that figure is 63 cents. At the same time gasoline retailers were making about 12 cents on the sale of a gallon of gas. Right now the government take is approaching an average of 50 cents a gallon. Retailers are making about 14 cents. so ... who is making the obscene profit? The local gasoline retailer invests in the community, buys a plot of ground, builds a gas station, hires the employees, pays the local taxes, deals with the local regulatory agencies, and makes a big screaming 14 cents on each gallon sold. Meanwhile, the government steps in without having invested one dime in that facility and takes about 50 cents per gallon. Some obscene profits, right?
As for profit margins ... the amount of money earned for each dollar of sales ... oil companies are nowhere near the top of the list. In 2005 pharmaceutical companies made about 17.6 cents for every dollar of revenue. That, for those of you educated in government schools, that works out to a 17.6% profit margin for the drug makers. How about your local bank? They made about 19.1 cents for every dollar of revenue. Almost a 20% profit! Not too shabby. And what about your household goods and cosmetics? Those companies earned 11 cents on the dollar. A lot of competition there. Now, the oil companies. What did they make? In 2005 the average was 8.5 cents per dollar of revenue. That works out to an 8.5% profit margin.
Maybe President Bush could have said something yesterday about MTBE. Congress recently refused to protect the MTBE makers from liability from frivolous lawsuits. MTBE is a component in gasoline ... and the makers are bailing. MTBE is to be replaced by ethanol .. .but the ethanol producers just can't keep up! This affects supply, and reduced supply in the face of increased demand means what? Higher gas prices? Could we get the ethanol we need from overseas? Why yes! We could! But the Bush administration has a 54 cent-per-gallon import duty on imported ethanol! There's your price gouging! Drop that import duty and I wonder what would happen to gas prices.
It's enough of a problem when Americans suffer from a tragic level of ignorance on issues of basic economics due to generations of state-run education. It's even more tragic when politicians pander to that ignorance for political gain.