It's Time for a Windfall Profits Tax!

[scott]

This would be absolutely true if petroleum wasn't such a national security and economic risk to the country which is controlled by 5 Oligarchies and a handful of small players. When making profits, the free market system only goes so far and when consumers feel they've had enough, you see Senate leaders calling for investigations into the inner-workings of oil suppliers and possible price gouging. Consumers decrying the power of the oil monopolies over politicians and the political system, and the need for more regulation.

...right here.

What you say would be true if "Oil Talking Points for Dummys... er Politicians" wasn't the source of this rant.

When making profits, the free market system only goes so far

I'm not even sure what you are trying to imply here... looks like just another empty jab on a free market system as a result of nothing more than pure irrationality.

and when consumers feel they've had enough, you see Senate leaders calling for investigations into the inner-workings of oil suppliers and possible price gouging.

As we've seen, consumers are rather ignorant to the basic workings of economics. They are willing to s out a 31% profit margin to Bank of America (banking is a pretty basic need, and banks shutting down would have a much greater negative impact on our economy than Suadi Arabia shutting off the wells) - but cry about Marathon Oil's 3.24% profit margin, which is about 3 times the normal.

And of course the only people more dense on the subject of economics than everyday consumers are Politicians. They are calling for investigations? Wow, I would have never guessed that politicians would gave into the irrational whinings of their voter base to make it look like they actually 1) care 2) know what the it is they are investigating.

And that brings us to price-gouging - which is not an economic idea, but a politicial one. In a free market, there is no such thing as price-gouging. If the gas station down the street wanted to charge $100 a gallon and someone were willing to pay it, then an economic equilibrium has been reached, completely on its own. They only time when the notion of "price gouging" ever holds even a semblence of merit is when the supply of a good is so scarce that is only available from one supplier and it must be had in order to continue whatever it is the person demanding it needs to do... but even then, the price is determined by market forces - its just that the supplier has the leverage to price where marginal cost (supply curve) meets marginal revenue. But with maybe the exception of a dusty street corner in West Texas, retail gasoline is an extremely compe ive business, and at the peak of Hurricane's Katrina and Rita stations were pricing at the pump below the NYMEX. Hardly sounds like "gouging" to me.

Consumers decrying the power of the oil monopolies over politicians and the political system, and the need for more regulation.

Yeah... because regulation certainly has worked well in the past...

You never cease to amaze with your ability to talk out of both sides of your mouth.

[RandomGuy]

State to state comparisons, in and of themselves, are meaningless. There are a number of variables that factor into any given population's employment rate, and comparing Low-Min-Wage State versus High-Min-Wage State alone doesn't control for those variables. All else equal, a higher minimum wage will result in less jobs. It's a quite simple economic model. Businesses demand labor at a given price, and there are people out there who are willing to supply that labor at a given price. Raise that price and the supply of labor increases, but the demand for that same labor decreases. In the way unemployment is measured, it's a double wammy - after the price floor (min wage) increase, you have more people included into the employment pool fighting for fewer jobs.

unless something is happening outside of your model that is not incorporated in your equations...

[RandomGuy]

Of course I say that slyly, because I think the equations are fairly correct.

What I think is that businesses sometimes forget some of Henry Ford's wisdom:

It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages.

There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.

My concern is that real wages have been stagnant and/or falling for quite some time, and the effect on our enconomy concerns me greatly.

The only thing that really raises wages in the long-term is education.

It all comes back to that one thing.

[Marcus Bryant]

Theoretically, this is true, that is unless the minimum wage was way to low in the first place which is I think is the point we are reaching at $5.50 per hour. Then a .50 or $1 raise would have minimal effect on employment because employers still need employees.

If the minimum wage is "too low" then it is below the market price for labor. That's actually a good thing because if it's above what would be the market price then fewer people are going to find employment or the employed will have less work.

I don't know why people believe that a minimum wage has no economic impact. I mean, if it didn't, why stop at $5.25 an hour or whatever?

Also, if you raise a price floor like the minimum wage then what will happen is that employers will drop those with the lower marginal products of labor, that is, young poor unskilled non-white kids. So those advocating an increase in the minimum wage are advocating a policy that at best does no harm and at worst, puts those who need a job the most out of a job.

The minimum wage is a fairy tale and yet, so many continue to believe...

[scott]

So those advocating an increase in the minimum wage are advocating a policy that at best does no harm and at worst, puts those who need a job the most out of a job.

More accurately said... the policy at best does no harm or no good...

[scott]

The only thing that really raises wages in the long-term is education.

If education is the proxy for increased productivity (which I wouldn't argue against), then you are absolutely correct. The free market will value the better educated (more productive) workers on its own, without an increase in the minimum wage.

[scott]

Where is the congressional investigation? Profits for banks have gone up while prices for bank products (known as interest rates) have gone up. BANKS ARE GOUGING!!!

Microsoft, Intel, and Cisco all have bloated profit margins... WHY ARE THEY GOUGING CONSUMERS?

AT&T made nearly 40% more profit than Valero Energy on almost half the revenue! AT&T is GOUGING CONSUMERS.

It's high time we get our Congressional leaders to call these price gougers up in front of Congress to answer for their outrageous profits!!! Oil companies got their day on the grill, now its time to go after the rest of the PRICE GOUGERS!!!

[Spurminator]

I knew those Johnson & Johnson assholes were raping me.

[Clandestino]

, almost no one pays min wage anymore...

[Vashner]

Well as long as they put a lot of that money into exploration i'll be happy. Keep my injectors flowing with sweet juice and I am happy.