Demonizing Big Profits -

This was my response to a comment to one of my earlier posts. Keep Em Coming.


Thanks for your comment Tom. I appreciate all views, especially intelligent, respectful debate.

My first thought when reading your comment is related to the profit of parent companies as the explanation for why benefits, salaries, etc. should be increased or as more common OVER TAXED.

A company's sole purpose is to raise money. Money for its owners, shareholders, employees, and investors. We all go to work each day to make a profit off our labor and increase our wealth.

Modern liberal politics has demonized the successful business because it is an easy, gut reaction, emotion stirring way to justify their socialism agenda. A company's profit, or the fact that "they can afford it," has no relation to the value of one individuals work, a proper wage and benefit package for that work, and/or earned merit increases. But profit totals (rarely profit margin) are used to justify mandatory higher taxes, higher wages, or forced concessions in bargaining.

The prime example recently is the much published and demonized "Big Oil Profits." Hillary Clinton in fact actually said she would like to TAKE, TAKE, those profits and distribute it to whom she feels deserves it more (IE. welfare, national health care, taxes).

Oil companies spend BILLIONS to find oil, refine it, and provide it in the marketplace to those who need it. Exxon spend 394 Billion dollars in 2005 to earn their record 36 billion dollar profit. The operated on approximately an 8% profit margin. 8%. But the big number gets the news and attacks, not the investment required or the moderate profit margin.

Oil companies employ hundreds of thousands of people, pay billions in taxes, and are the foundational stocks for MOST retirement, pension, and investment portfolios. I am willing to bet that most if not EVERY union pension/retirement plan is invested in energy stocks.

Therefore, if Oil companies voluntarily cut their profits for good will, charity, socialistic ideals, or altruism, they would be cutting the pensions, paychecks and futures of every worker, shareholder, pension plan and good ole Uncle Sam. The presidents and executive boards of those companies would be rightfully fired, and many of their biggest critics would be screaming about the reduction in their personal retirement accounts.

A Company's profit total is not a valid justification for demonizing it.

Thanks for reading my blog and commenting.

The A-Hole.

ps..check your retirement portfolio.