I wrote a piece the other day bashing those who would bash speculators, as if it’s their fault for higher gas prices. Take a look and use what you’d like.

Cheers.
Jack

I’m surprised by the logic of the examples cited below. Something tells me that if the price of gas is $8/gallon, and sales doubled to $808 billion, then a $40 billion profit would fall to below an extremely nominal 5%. Remarkable math isn’t it? Can’t quarrel with that. As an example, – if wood costs more for furniture makers to purchase, they’d raise their prices to maintain profit margins. Meanwhile, if their profit margins quadruple, wouldn’t gouging be suspected, especially if there is a monopolistic furniture cartel and we can’t exist without their furniture?

Second, one does not have to purchase Starbucks coffee, but must buy gas, right? Incidentally, Starbucks stock value has declined, and they are shutting many of their stores. On the other hand, this hasn’t happened to ExxonMobil, so why are we still subsidizing the oil companies with $14 billion of taxpayer dollars when they are doing so well? Political contributions/expediency, maybe??

Supply-side economics (including tax, tariffs and monetary policies) going back to the Milton Friedman, Arthur Laffer and the Ronald Reagan era has been a dismal failure. They claim that SUPPLY CREATES DEMAND. I submit that DEMAND GENERATES SUPPLY, – a huge difference in my opinion, as it has much to do with our current financial dilemma. I’m surprised it’s still being quoted as it has been the (embarrassing) midwife of our $8 TRILLION national debt. Is the decline of the dollar not connected to deficit spending and giving tax breaks to corporations and the very wealthy? Why are we borrowing from China to pay our bills? Why are there about 13,000 US corporations “headquartered” in a 5-story building in tax-free Cayman Islands?

The Bush-Cheney administration has time and again abused their authority and the public trust by catering to the likes of Enron, KBR, Haliburton, the oil cartels, etc. While corporations exist on their profits, and more power to them, – governments exist to serve and to protect the people from predatory practices and not to corporations ahead of the people. Their excesses should be prosecuted rather than being excused under the guise of free enterprise.

I refer you to the life and books of Kevin Phillips, a senior Republican Strategist in the Nixon administration. His most recent book is: Bad Money: Reckless Finance, Failed politics and the Global Crises of American Capitalism (2007)

If the public didn’t send a strong enough message to the GOP in 2006, I believe they are ready to send a stronger one in 2008.

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