Reasonable Americans would consider 265% profit margins as price-gouging.

[HomerRamone]

http://www.smirkingchimp.com/print.php?sid=23211

Stephen Crockett & Al Lawrence: 'A deep look at corruption culture'

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Oil refineries are making operating profits in the 265% range on their products at current prices. These profits are far in excess of a "reasonable rate of return." It is questionable if current prices and operating profits are higher than the "market can bear" in the long run. Reasonable Americans would consider 265% profit margins as price-gouging.

The federal government is currently controlled by oil company interests in the form of Bush Republicans. Under the Bush Republicans, many of the largest oil companies have been permitted to merge in recent years. Chevron and Texaco are no longer competing with each other. Phillips 66, Conoco and Unocal are in the same situation. BP and Amoco are no longer competitors. The oil industry mergers have greatly reduced competition for their products which are considered in economic terms relatively "inelastic."

The "inelastic" economic term means that demand does not fall quickly when prices rise because consumers cannot reasonably do without the "inelastic" products regardless of price. Without fuel, goods and services cannot reach consumers, stores or businesses. Without fuel, workers cannot get to their jobs. Without home heating oil and natural gas, Americans will freeze to death. Industries that supply "inelastic" products should be heavily regulated by government to stop price gouging and to foster a competitive business structure in order to hold down excessive profits and prices.

The "reasonable rate of return" standard should be mandated by law if necessary. In extreme cases where Corporate behavior hurts the national interest and national security, government should even consider taking complete control of these industries. They should be taken out of irresponsible private hand and operated on a governmental, non-profit basis. The American people should come before private profits.

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[texpatriot2004]

1. Rethugs don't like big Government interfering with business...

the like the price gauging business just fine.

I agree with you though.