Friday, April 25, 2008

Economics 101: The Price of Gas

Blaming greedy oil companies on the rising price of gas is simply irresponsible. The profit margins of a few selected industries are as follows:

Periodical Publishing24.9%
Shipping18.8%
Application Software22.5%
Tobacco19%
Water Utilities10.2%
Major Integrated Oil and Gas9.5%
Hospitals1.4%
Drugstores2.8%

The water utility industry has higher profit margins than major oil and gas firms! Why isn't every CEO with profit margins above that of the oil companies made to testify before Congress for "price gouging"? Clearly, greedy corporate profits are not the issue.

The Fed is trying to print enough money to get us through this "crisis" but this only makes the dollar more worthless.

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