Frustrated Incorporated
I just want something simple, like the TRUTH!

Our biggest oil company, Exxon, is one of the smallest oil companies in the world if you factor in the Saudis and all of the Gulf states and their companies and so forth.

Our domestic oil companies are huge within the context of the continental United States — well, including Alaska and Hawaii, but in terms of the world, they’re tiny. They’re among the smallest oil companies out there.

“US Senate Republicans have blocked a Democratic plan to tax the windfall profits of the largest oil companies. Democrats on Tuesday failed, 51-43, to get the 60 votes needed to overcome a Republican delaying tactic on the energy package, and bring the bill up for consideration. Democrats said the huge profits enjoyed by the largest US oil companies should be reined in with motorists paying more than $4 a gallon (0.64 per liter for gasoline and oil prices soaring well beyond $100 a barrel.) But Republican critics said higher taxes on oil companies would increase — not lower — gasoline prices.”

Look, Jimmy Carter did this. Jimmy Carter, windfall profits tax on the big oil companies during that four years of malaise, and you know what happened…

Jimmy Carter did his windfall profits tax, and the oil companies said, “Okay, fine, we’ll stop producing as much in the United States. We’ll lower our production so we’re not paying taxes,” and that’s exactly what happened. They cut back production domestically. They went back and produced more in their offshore properties and tracts.

The Democrats know this.

This is not about revenue, it’s not about oil; it’s about punishment. It is about punishing risk takers. It is about class envy. It is about punishing people who then have success after taking a risk.

It’s like the minimum wage. They raised the minimum wage, it’s one of the few achievements that Nancy Pelosi had. And so we got the most recent unemployment report, 5.5%.

And of course, all hell broke loose on Wall Street, and everybody was panicking. Bbut very few people put together the fact that this new increase in the minimum wage rate combined with a flooded job market of both high school students and college graduates is what led to the 5.5% employment number.

Jerry Bowyer was posted a piece at called: “What the Media Didn’t Tell You About Friday’s Unemployment Spike.”

“It wasn’t Bush, it wasn’t greedy corporations, or free trade, or history’s most over-predicted recession. It was not the oil companies, income inequality, or the excesses of cowboy capitalism. None of these things caused the unemployment rate to jump a half a percentage point in one month. Ask yourself a few questions: Why did unemployment surge at a time when unemployment compensation claims are historically low? More to the point, how could unemployment spike this much without a coinciding spike in corporate layoffs?”

If unemployment went up this high, where in the hell were all the people that lost their jobs, is what he’s saying. There weren’t lost jobs and yet unemployment is up a half a point?

“The answer to all of these questions is the same: because very few people lost jobs last month. This huge jump in the size of the unemployed comes from new entrants to the economy — hundreds of thousands of them. In short, well over 600,000 people who were not job seekers in April became job seekers in May. And who starts looking for work at the end of spring? That’s right — students. Hundreds of thousands of students are looking for work right now, and they’re not finding it. Congress is to blame. Last year Congressional Democrats passed the Fair Minimum Wage Act of 2007, which started a phased hike of the minimum wage from $5.15 an hour to $7.25.

Free market economists warned them that this would increase unemployment — that rapid increases in unemployment compensation hit teens and minorities the hardest.”

You know the percentage of people earning the minimum wage in this country on any given day is well over 50% teenagers. It’s not people who are providing for a family of four or a family of two.

“Rapid increases in unemployment compensation hit teens and minorities the hardest. But the class-warriors are running the people’s house now, and they would hear none of that, so they took to the floor, let loose the dogs of demagoguery, and saddled America’s pizza parlors, municipal swimming pools, house painting businesses and lawn mowing services with a huge cost increase. Now, we see the perfectly logical outcome of wage controls.”

Which is exactly what the minimum wage is. It’s a wage control, and it is an arbitrarily established number that has nothing to do with productivity, experience, qualification.

So it’s a wage control. And the logical outcome of such “rising unemployment among the most economically vulnerable.

Friday’s unemployment spike occurred overwhelmingly among teenagers, and secondarily among African Americans. Just like we said it would. A kid who is at entry level of job skills may be a good deal at 5 bucks an hour, but not at 7.

Our anointed leaders gets to glory in their generosity (with other people’s money) and just so long as very few people in the media know that a demand curve slopes downward (a good bet, there), no one calls them on it. This summer the left will make political lemonade out of a tough student job market. Heck, it may provide a small army of angry unemployed youth to man the campaign, hungry for hope and (loose) change, never once realizing that they’re working to entrench the leftie war on business, which left them jobless this summer in the first place.

The key to understanding this is very simple.

Hardly anybody lost a job in May when the unemployment rate went up half a point, five to five and a half percent. And those who couldn’t find work were the new job market entrants.

What’s all this got to do with price of oil, the windfall profits tax? Because none of this is aimed at actually helping anybody, and it’s typical liberalism, it ends up harming the very people it’s intended to help.

Look at Obama and his predicted, at least he says this is what he wants to do, tax increases. He wants to raise taxes to 39% on people who make $200,000 a year or more. To him that’s rich. Current rate’s 35%.

He wants to take it back to the glory days of the Clinton administration of 39%.

All right, fine and dandy. Well, what’s going to happen here?

Well, how many small business owners, the largest employers collectively in the country, they file their sub-S, Subchapter S corporations, but they file their returns on a personal return, or 1040. So their rate’s going to go from 35 to 39, guess what?

The very people that Obama says, look, I’m going to get even with the rich people for you. I’m going to raise their taxes. I’m going to make things fair. And these people are going to go, yeah, yeah, yeah, you stick it to them. And who gets it stuck to ’em? The guy who loses his job who’s not making $200,000 because his employer has to fire him in order to pay the federal government’s new taxes authored by Obama.

When Congress directs small business, everybody, to raise the minimum wage on a graduated scale up to $7.15, well… small business owners are not going to sit there and say, oh, well, okay, because they don’t have, just like you probably don’t at home, they don’t have an unlimited supply of cash sitting around that they’re not doing anything with. They might have some cash flow, but it’s allocated or it’s there for insurance or what have you.

But if somebody comes along and says, “Look, the four guys you’re paying minimum wage you’ve gotta increase them by X,” one of them is going to lose a job because the business owner is going to do his best not to sit there and lose money, ’cause if he loses money for too long he’s out of business, and then everybody that works there is fired.

This is the incremental loss of basic liberties and freedoms.

All of these well-intentioned people who have convinced way too many Americans that their intentions are honorable and they love people and they’re filled with compassion and yet everything or most everything they try as a remedy to some social problem, not only doesn’t work, it exacerbates the problem.

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