Friday, September 12, 2008

Simple Economics

I had thought about blogging yesterday, but, decided to let everyone remember 9/11 however you wish to do so. I had several moments of silence and watched the news coverage while working to get my reports done.

Today, I was going to write about things to try and remind you all of who it was/is that responded to the attacks and how brave men and women put their lives in harms way each and every day to keep this country safe. Of course, I am talking about the men and women in the respective uniforms of this country. While, I usually talk about the Military, this is intended to also include the Police Officers and Fire Fighters throughout this country who provide protection on a local level. They too, are heroes who help to maintain the people of this country safe from it's enemies. So, let's all give a big "THANK YOU" to everyone who wears a uniform in service of this country.

Alas, something has come up that I feel needs to be mentioned. If there is any reason for Congress to get off their collective butts and lift the ban on drilling in this country, Ike is providing substantial proof that we need to do it NOW!!!! A friend of my wife's called us this morning and told us that gas went from $3.80 to $4.99 from 10pm last night to 2am this morning. There are stations here that are limiting the amount of gas that you can purchase at one time to 10 gallons. That's not even 1/2 a tank for our family vehicle.

Along with the drilling, we need to build more refineries. The majority of our refineries are in the area that is being affected by Ike. As a matter of fact, the largest refinery in the U.S.A. is in Houston and is now shut down and evacuated. This storm is what is causing the price of gas to go up so drastically. If we had our own oil and other places to refine it, then we would not have to worry about a storm coming through quite as much. There would be other places that we could rely on to provide the demand.

Also, along with this is this stupid "windfall profit" tax that Obama and other Democrats want to institute on the oil companies. Let me tell you something, anyone who thinks that raising taxes on a company will somehow benefit the people who buy the end product is high. The company will just raise their prices because their costs have gone up. It's simple economics.

I came across some statistics that I found to be pretty interesting. Exxon Oil reported a profit of about $1500 a minute. Now, that is quite a sum of money, however, they also pay almost $5000 per minute in taxes and spend almost $15,000 in other costs such as research and development, the actual refining process, etc., etc., etc. Now, I ask you, if the company is paying more than 3 times their actual profits in taxes, what will their reaction be if Congress raises our taxes? I can't say this enough, IT IS SIMPLE ECONOMICS!!