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Re: OT: Politics [Was:Social Contract]

"Roberto C. Sanchez" <roberto@familiasanchez.net> writes:

> Matthias Julius wrote:
>> Steve Lamb <grey@dmiyu.org> writes:
>>>Cybe R. Wizard wrote:
>>>>US $9,900,000,000 (billion) profits /by one oil company/ in one
>>>>quarter when retail prices were skyrocketing.  Does that seem like the
>>>>oil cartel has the American interests at heart?
>>>    Didn't I address just this in a message 2 days ago?  I make a widget for
>>>$1, sell it for $1.10, make $.10 and everything's ok.  I make 2 trillion
>>>widgets for $1, sell them for $1.10, make 20 billion and there's a
>>>congressional hearing into the matter even though the price per widget, my
>>>profit margin, never changed.
>> The situation is a little be different here.  They're not suddenly
>> selling 2 trillion widgets instead of one.  They are selling each one
>> of them for $1.50 instead of $1.10.  And why do they need special tax
>> breaks when they seem to do well?
> However:
> - they are selling more than before
> - it is costing *more* to get the oil out of the ground

I doubt this cost has gone up 50% in the last year.

> - we give them tax breaks because we want the companies to keep as much
> of their business within our borders as possible

One could also penalize the import of foreign oil.

> Please understand, tax breaks (unless they are done in a completely
> brain dead way) almost always result in a net *benefit* to the
> economy.

The trick is to keep the right balance there.  Since the economy also
benefits from services provided by the state made possible by tax
revenue.  And to give tax breaks and increase debt at the same time
can only be a short term solution.

>  Besides, why are you against them raising prices?  If the market will
> bear it, they are free to do so.  If you go to auction and someone
> outbids you, are you upset becuase you are not willing to pay as much as
> the other guy?

Well, of course, a business is all about maximizing profits.  This is
the way it is and I don't want to condemn any company for trying do
that (not even Microsoft).  The question is whether they need special
help for that.


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