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Re: OT: Politics [Was:Social Contract]

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

> 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.

I understand.  I was just replying to your statement above.

>>>- 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.

Yes they will.  Unlike tax breaks that won't lower prices.  They tend
to get silently ignored by the sales people.

>> 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.

I think, here the reasons for wanting them to operate here are mostly
not economical.  But, that's fine.


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