Tuesday, May 6, 2008

Clinton and Obama to Appear at Laugh Factory

Oops. I am sorry. I meant to say that Clinton and Obama make me laugh! Why? Simple - when it comes to gas proposals they are both idiots.

Recently Obama began running ads in North Carolina and Indiana denouncing Hillary Clinton's "gas tax holiday" proposal ticking through a number of points of his plan - what he neglected to tell voters was that his plan is virtually identical to Clinton's with the exception of the suspension of the gas tax. Both plans want to implement a windfall profits tax on the oil companies, both want to fund $150 million in alternative energy research, and both accuse oil companies of price gouging. By the way - Obama is right that no economists have come forth and said that Clinton's plan will save any money at all, but come to think of it none of have come out for him either!

Price gouging? Don't we live and operate in a free market and hasn't the FTC done an number of inquiries on behalf of congress that have time and time again determined there is no price gouging - it is free market dynamics at work! I believe the Federal Reserve has done as much of a disservice to the American consumer by cutting rates, weakening the dollar, causing additional speculation in oil driving the market price up - ever heard of a Petrodollar? Are these presidential candidates even aware of the increased consumption by India and China.

Then we have Hillary speaking on This Week May 4th about the lack of economist support for her gas tax ideas stating the following:

"Well, I'll tell you what, I'm not going to put my lot in with economists, because I know if we get it right, if we actually did it right, if we had a president who used all the tools of the presidency, we would design it in such a way that it would be implemented effectively."

I tend to believe someone who speaks like that has a rectal cranial inversion - or in short has their head up their ass. Now you and I know the President has a lot of cool tools, but come on -- does it really come with a tool to suspend the laws of supply and demand? If it does - impressive.

And finally let's look at oil company profits. It is true that oil companies make a net profit that is larger than the S&P 500. The S&P 500 averages 8.5% and oil companies average 9.7% in the S&P Energy Sector - but compare their net profits with those of Google and other companies. Google showed a net profit of 25% in their most recent quarter far out performing the S&P 500 or the oil companies. Should we have an online advertising windfall profit tax?

I think FactCheck.org puts it best.

"In a nutshell, Clinton and Obama are offering nearly identical energy plans. Both imply that price gouging is partially responsible for rising prices without providing adequate proof that price gouging is actually occurring and both want oil companies to help fund research into alternative energy. And neither candidate has a short-term plan that will, in fact, help families cope with rising gas costs."

Laughing complete.

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