Wednesday, June 18, 2008


the rising price of oil -- the falling value of the dollar

To the casual observer, the price of oil has climbed ridiculously over the past couple years.

Barrack Obama is calling for "windfall profit taxes" on the oil companies. By some magic of microeconomics, he believes increasing the costs of the oil companies will decrease oil prices. At the same time giving that money to congress and hence "back to the people" will somehow offset the burden these high prices of oil have had on the American public.

It's exactly this sort of economic nonsense that epitomizes the Democratic wealth-transfer mindset. If the profit margins of the oil companies are to remain fixed at 7.5%, then increasing their tax burdens will only drive up the price of gasoline.

The really sad thing is people think that gas is getting more expensive instead of realizing that the dollar is losing value.

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