Windfall profits

English: Flag of the Organization of Petroleum...

English: Flag of the Organization of Petroleum Exporting Countries (Photo credit: Wikipedia)

Way back in 1973 when OPEC was first able to raise the price of oil dramatically and Iran and others were able to impose the first oil embargo and  oil company profits shot up, there was serious talk of imposing a windfall profits tax on Big Oil. After all they had done nothing to earn the much greater profits. That effort died, probably because the nation was distracted by Watergate, and successful oil company lobbying.

Now that there is less competition among the oil companies and their profits have increased many-fold from the early 1970s, I think that it is time to revisit the idea of imposing a windfall profits tax on Big Oil. If the 1% will not pay their fair share, then let us tax corporate persons more heavily to help reduce the Federal deficit. The GOP always wants to balance the budget on the backs of the poor; they do it every time. It is time for a different approach.

Cheap gas

Taco Bell

Taco Bell (Photo credit: Wikipedia)

Prices rise
Prices fall
What are the causes?
Do you know?
Some say demand
Some say supply
OPEC and Big Oil
Government taxes
Speculators and speculation
Weather and seasons
Maintenance
War and peace
And rumors thereof
Natural disasters
Acts of God and man
Where can you get
cheap gas?
at Taco Bell

Student debt

English: Map of Québec Français : Carte du Québec

English: Map of Québec Français : Carte du Québec (Photo credit: Wikipedia)

Student debt makes starting life as an independent adult more and more difficult. Because of low paying jobs or no jobs, more and more graduates are living with their parents because they cannot afford a life of their own. This article about protest in Quebec uses the term “debt peonage” which I believe wonderfully describes life in debt, whether from student loans or credit card debt. Allowing the banks to charge more than 10% interest is usury IMHO, prohibited by the Bible and is anathema to all thinking individuals. Thomas Jefferson advocated a free education through college for all free men. By neglecting the education of our young people or making it too expensive and neglecting our infrastructure, we are ensuring that we will not be able to compete in the 21st century. The Soviet Union bankrupted itself by trying to maintain a superpower’s military establishment at the expense of its civilian society. Are we going to follow their example? Have we learned nothing?

Price of gas

Gas prices in late May 2008.

Gas prices in late May 2008. (Photo credit: Wikipedia)

Here it is the beginning of the Memorial Day weekend when gas prices usually rise for the summer driving season, and gas prices are actually falling. I think that is an ominous sign for the continued health of the economy. Additionally, it was only a short time ago that the GOP was blaming President Obama for the spike in gas prices. Now they are totally silent about the fall in prices. If he is responsible in one direction, he is responsible in the other. Come on GOP, you can’t blame Barack for everything, but you sure do try.

Mitt Romney/ latter day Henry Ford?

Henry Ford in 1888.

Henry Ford in 1888. (Photo credit: Wikipedia)

How many jobs could a job creator create
If a job creator could create jobs?
How many jobs would a job creator create
If a job creator would create jobs?

A job creator will create jobs if and only if he/she can sell the manufactured goods/services for a profit. If there are no buyers who can afford to buy, there is no reason to hire anyone to produce the goods/services, no matter how low the tax rate.

Henry Ford was a famous job creator. Most people have heard how he paid his workers $5 per day so that they could afford to purchase the cars they built and that Ford sold. Most people have not heard the rest of the story. Ford hired most of the skilled workmen in the Detroit area, creating a labor shortage for other employers in the area who could not or would not match his high wages. Once the other employers in the area went out of business, Ford was able to lower the wages he paid, since his employees could not find other jobs in the area. It is employer abuses like that that lead to the formation of unions.

We want job creators to create jobs here in America for American workers. Those jobs must be jobs that pay well enough that American workers can afford to be consumers of American produced goods and services. Jobs are not good jobs if the workers can afford to buy only goods/services produced outside the US.

In her book Nickle and Dimed, Barbara Ehrenreich described working at Wal-Mart. Her wages were so little that she could not afford to shop there even with an employee discount. Those are not the jobs we need job creators to create. If wages were low enough, we could put everyone to work, but what would be the point? If the wages were so low that workers could not feed, clothe or house themselves without government assistance, then those jobs have little value to the workers or to society. Those jobs would represent a government subsidy to the employers, enabling them to pay lower wages.