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It was hypothetical example to explain "windfall' profits and why they perhaps aren't always a bad thing, in that they bring others into the market creating competition and lowering prices.
Sheesh. Of course there are people who help for free. It wasn't meant to be a comparison to the oil companies and it wouldn't be a good one anyway.....the simple matter of fact is that the oil companies are NOT gouging ANYONE!
In 2007, Exxon earned a 7.6% profit margin. The average of most major manufacturers was 5.8%. Throw out the auto industry and that average goes to 9.2%. I can't find data for this year yet.
Over the last 5 years, Microsoft has averaged 27.9%. In March, Apple perfromed lower than expectations with only 32.9%, down from 35.1% a year ago. Doesn't pretty much everyone need a computer to get by? How dare Microsoft and Apple make so much!
Walmart, another retailer everyone loves to hate, only made 3.5% average in the last 5 years (by the way, I don't shop there, but not because I hate them).
7.6% is not a big profit margin. I really fail to see how eliminating all of their profits on the sale of gasoline would do much anyway. It's about 9 cents a gallon. Yes, everyone uses it and it certainly affects the price of everything else. But the oil companies are not the bad guys for making 9 cents a gallon.
And yes, CP, we do use it to run everything, period. Perhaps this is why we might want to think about drilling for and using our own natural resources because it is going to be a really, really long time before everything doesn't run on it. Meanwhile, everyone will continue to whine and Congress will threaten to sue OPEC and Pelosi and company will shut down debate on the issue becase they are on the unpopular side.
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