Tuesday, August 12, 2008

Grandma's Retirement Check

by Little Duke

Another day, another call from a socialist / progressive to seize those evil oil company’s profits and give them to the “working” people. This time it’s Dick Durbin, the pride of Illinois, who stated that the profit of the oil companies are too big and it’s time for a “windfall” profits tax on the oil companies. Let’s forget for a moment that Mr. Durban couldn’t define windfall if his life depended on it. The real question is why the oil company’s profit margin are so low. Profit margin is the best way to compare profits and the oil companies’ profit margin is 8.3%. That’s 8.3 cents per dollar of sales. Is that a lot? I don’t know… Beverages and tobacco had double that profit margin as did drug companies. Computer companies were at 14 percent. Why isn’t the esteemed Mr. Durban calling out those evil companies? Quite simply, he’s preaching wealth envy.

The arguments are old and tired and let’s face it; they play to the socialist base of the Democratic Party. Most of those that would believe the rhetoric do not really understand any of what was just said. They’re paying a lot for gas and they want somebody blamed. No, we can not win the argument as long as we let the democrat / socialists dictate the terms.

Let’s look at oil profits. Who owns the profit from an oil company? Its stockholders do. Profits are the property of the owners (stockholders) of the company. Approximately 1.5% of oil company stock is owned by oil executives. That means 98.5% of the stock in those companies is owned by; mutual funds; 401K’s; IRA’s and pension funds. In other words, the oil company is owned by your grandmother.

It’s time to change the terms of the argument. Instead of letting Barak say “I want to seize oil company profits to give working people (oh, please) $1,000 checks”, we should report that Barak wants to seize grandma’s retirement to give people $1,000 checks!

Think of how that change takes the wind out of the whole wealth envy argument. We have let the democrats dictate the terms of the argument for too long and grandma needs relief from politicians as much as she needs relief from gas prices.

Thanks to Little Duke for the above......I pity those "government educated" who cannot see the idiocy of the Democrat plan.