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Re: OT: Politics [Was:Social Contract]

Matthias Julius wrote:
>>- 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.
So what?  It is a free market.  If there is more demand, then they can
charge more.  Ever try to get a hotel room in a city while the Olympic
Games were in town?  They are *ultra* expensive.  Should congress
investigate Atlanta and Salt Lake City for allowing that to happen?  NO!
 Keep the supply fixed and increase the demand -> higher prices.  I am
stunned that so few people understand this.

>>- 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.

It is obvious that you do not understand economics.  Tarrifs benefit
*noone*, except for the entrenched local base.  They hurt customers more
than anything else.  Seriously, you complain about gas prices and then
say we should put an additional tax on foreign oil?  Don't you think
that will raise proces.

>>Please understand, tax breaks (unless they are done in a completely
>>brain dead way) almost always result in a net *benefit* to the
> 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.
That's true.  I am happy that Bush cut taxes and furious that he
increased spending.  The amount is disturbing, however I don't think
that the idea is unwarranted.  Remember lowering taxes will increase the
tax base.  Think of a landlord with a half-enpty building.  He lowers
rent and more people move in.  Yes, he is making a bit less from each
one, but he has lots more tenants now.

>> 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.
That's true.  I hate corporate welfare with passion.  If the government
needs to give a company an incentive to operate here rather than
somewhere cheaper (i.e., a foreign country), then that is fine.  But
tarrifs are a no go for me, as are unnecessary incentives.


Roberto C. Sanchez

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