Thursday, October 16, 2008

Economically Clueless - HUMAN EVENTS

"Obama's energy plan is superficial and naive. He proposes a 'windfall profit tax' but fails to define what such a profit is. How does one distinguish an ordinary profit from a 'windfall profit'? Even at their record highs, oil company profits are in line with other industrial profit rates -- roughly 9 percent.

So does Obama believe that a 9 percent profit is an 'outrageous windfall profit'? If so, should every company that is successful and earns 9 percent or more have the government confiscate those profits as a 'windfall profit'? In 2007, the chemical industry earned an average profit of 12.7 percent. The electronics and appliances industry earned 14.5 percent in profits. The computer industry earned profits of 13.7 percent. Are these 'windfall profits' that Obama will confiscate? Apparently so."

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