Oil executives have to tighten their belt during the fastest run up in gas prices in history. Exxon-Mobil which reported profit of $10.9 billion for the last 3 months disappointed investors who were expecting it to earn more. Exxon-Mobil earned $11.7 billion in the 4th quarter of 2007. Keep in mind that these numbers are not annual profit, they are quarterly profit.
Now, let me get this straight. The oil companies say that they are not to blame for the higher prices that we pay at the pump, but they are earning record prices. In my Accounting 101 class I recall learning that profit is the difference between what you buy something for, otherwise known as cost, and what you sell it for - price.
I'm okay with companies making a profit, that is what our system is based on. Profit is necessary to support our way of life, but at some point enough is enough. Some profits are obscene.
That being said, I do not think that the government should limit the amount of profit that a company can make. That seems to be contrary to our free market system. So for those neo-socialists who believe that we should take the profits from companies that make too much - don't cry when your pension fund shrinks because profits are down. We can't have it both ways.
But fair is fair. Companies should be able to make a profit based on the old rule of supply and demand (Econ 101). Maybe Exxon-Mobil is just a poorly managed company that is in the right industry - if it was better managed maybe its "low" profits would not have disappointed Wall Street.
Who wants to bet that the Exxon-Mobil executives don't get big fat bonus checks. That is a bet that I wouldn't make. I'll put that gambling money in my gas tank and help the poor guys out.
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