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Wednesday, May 03, 2006

Cutting Out the Profit

In a recent poll, 8 out of 10 Americans say Bush isn't doing enough to contain gas prices. That means an unbelievable 80% believe the president actually has the ability to control the price of gas.

But he doesn't. You see, we are a free enterprise capitalist society. That means supply and demand dictates the price of goods.

But for the sake of argument, let's ignore the laws of economics and assume that the government mandates that oil companies are not allowed to be profitable. How much would you save at the pump if the greedy oil pigs were to make NOTHING?

Well, they make on average about 8 to 9 cents per gallon (meanwhile the govt imposes 45-60 cents tax per gallon) so what would your savings be when you fill up the car?

With Greedy Oil Pig Prices: 20 gallons * 2.75 = $55.00
With Zero Profit : 20 gallons * 2.66 = $53.20

Yea, Big Oil is really profiteering, aren't they? Nancy Pelosi recently called them 'robber barons'.
Congress and the taxes they impose are the real robber barons.

The cost to build a new refinery? About 3 billion dollars. The problem is, we arent' allowed to build them. We aren't allowed to drill in the Arctic, Florida, Gulf Coast, California, Colorado, and many other places. We sit atop some of the richest oil reserves in the world and remain completely dependent on the Mideast.

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