An article today over at Seeking Alpha takes a look into Rep. Paul Kanjorski's idea to take profits from oil companies to "reasonably price" energy. If we have politicians like this in Washington who don't have the slightest idea of how economics work, in the long run this is not a good thing for the economy. More and more this country has relied on the government for support in various areas of the economy, and little by little this is coming back to haunt us. The Federal Reserve maintains an enormous power to print money whenever it feels to and as a result we have a falling dollar and continuing inflation. The Fed isn't even audited, and as some say it's more secretive than the CIA.
Socialism may sound like a good idea (just like how communism sounded like a decent idea back in the 1800's), but it is nothing else than a short-term solution to things that won't go away. Just look at how the education system here in the U.S. is working. The quality consistently decreases, every year there are more and more dropouts, and politicians seem to believe that more money will solve the problem. Well, the Department of Education has doubled over the past six years yet nothing has improved to the point that even gets close to justifying that amount of money.
Normally I don't like to get political on this blog, but people have given politicians so much power these days that it's suddenly become a reality that government may soon step in and decide which industries and companies they like and will and won't tax. This game of pick and choose, like socialism, is doomed to fail. A true free market economy with sound money where the individual has the liberty and responsibility is what drives prices down and promotes efficiency. This chart from the article mentioned above shows that the oil industry actually doesn't have that high of a profit margin compared to many other industries.
More government intervention will not solve any economic problems over the long run. We have people who don't have a clue how economics work trying to solve problems that were created by government intervention in the economy in the first place. It's time that people wake up and realize where this country is headed if we continue on this path.
Tags:
economy, gas, government, intervention, oil, politics, socialism, taxes
Posted at: 09:38 AM | Add Comment
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