Saturday, April 30, 2011

Oil Pricing, Part Three

From Washington Post with Bloomberg Business News today,

President Obama on Saturday blasted oil companies for enjoying gangbuster profits while pump prices surged to nearly $4 a gallon this week and again urged Congress to end $4 billion a year in subsidies for the oil and gas industry.

He did acknowledge, sometime last week it says, that “My poll numbers go up and down depending on the latest crisis, and right now gas prices are weighing heavily on people.”

So buy all means let's end these tax subsidies that lower oil company costs because any sensible company, when their costs go up, always lowers their selling price.

I think he has some idea that he's going to win points with the public by "punishing the oil companies" for their high prices, only it isn't the oil companies who are causing the high prices, and it's the public buying gasoline from the oil companies who will wind up getting punished. He probably knows both of those things, but thinks the public is so stupid that they don't. And he's probably right.

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