Tuesday, October 28, 2008

It should be breaking news...

Oil Companies intent on destroying McCain campaign.

It was reported on CNN this morning that oil refineries here in the U.S. are considering shutting down production in a number of refineries because the cost of buying the crude has now equaled the cost of producing the gas which currently is running at about $2.66 a gallon. The oil companies are doing this in order to raise the cost of gas, just as about a week before, OPEC decided to cut production in order to keep up the cost of oil. CNN tells us all this without going further into the implications.

What after all did the high price of gas do for you anyway? Like trying to sell that gas guzzling Hummer that no one was prepared to take off your hands for a song? Increasing the cost of stamps, shipping packages, for the U.S. Postal Service. Doing a number on state and county budgets. Having to decide on a limited budget whether you want that gallon of milk today that cost as much as that gallon of gas. Gas prices that closed businesses and cost jobs. People who turned to buying in record numbers, environmentally friendly cars. People who took to riding bikes and walking more. Yes, the lack of demand drove down prices. So now, against all Economics 101 reason, OPEC and U.S. Oil companies want to shut down production to increase prices. What will that accomplish? Besides reducing demand even more as people look for ways to not have to pay those burdensome prices.

Along comes McCain, who promises that corporate tax rate of 25%. He says that high taxes cripple businesses and cost jobs. Back during the oil shock days just prior to businesses starting to collapse under their own weight of greed, like Countrywide, people were staring at the price at the pump and the last thing on their minds was taxes. The business interests that shut their doors because of literally an energy crisis, they weren't thinking in terms of taxes either. Could they afford the high cost of electricity, the gas to fuel the rigs for transportation? Could truckers make a living when half of their expected paycheck would go into filling an 18 wheeler. Taxes weren't an issue a few months ago when Obama started talking about green energy to reduce our dependence on foreign oil. Of creating fuel efficient cars here in this country that would ultimately eliminate our need for oil at all. On the other hand, when the energy crisis was something that McCain was able to exploit, "drill here and drill now" was the mantra. But we all know, don't we that as people turned to conservation out of practical need to survive what the energy crisis was creating, a lower demand for oil and drilling here and drilling now would become too costly for what it would be worth to extract it. As oil prices dropped, McCain dropped that mantra from his campaign playbook. On the other hand, Obama talking about oil prices being "too high," oushed again for green technology. Well, now between OPEC and the U.S. Oil companies, there is an added incentive for Obama to not only be elected but also to push green technology.

Now I am going to have to wonder if he will in turn drop his 25% tax pledge to corporations that were fully intent on driving smaller businesses into the ground because of incessent greed. That, or lose heavily to Obama.

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