Profits Are Not Obscene and Government Distorts the Market

by Jimmy on May 27, 2008 · 0 comments in Limited Government

In the wake of congressional, witch-hunt hearings with oil executives regarding the price of gas, John McCain has chipped in to display his liberal side once again:

“I don’t like obscene profits being made anywhere–and I’d be glad to look not just at the windfall profits tax–that’s not what bothers me–but we should look at any incentives that we are giving to people, that or industries or corporations that are distorting the market.” From Michelle Malkin.com

For 1: Profits are not obscene. As W. Cleon Skousen puts it profits are “the means by which production of goods and services is made worthwhile.”

For 2: Government intervention is what distorts the market, not law-abiding companies. In a free market, oil companies would be free to drill for and refine the oil we have at our finger tips. Government regulations prevent this free market activity and distort the market.

John McCain wants to punish oil companies for running efficient operations that turn a profit. And what is this government intervention going to do? Only make the problem of high gas prices even worse. And by putting additional tax burdens on oil companies, John McCain will be taking away dividends (profits) from every day Americans who’s 401Ks are invested in these companies (43 percent of oil and natural gas company shares are owned by mutual funds).

Of course, McCain’s policy is sounding like his good buddies int he Democrat party, like Barak Obama, who’s solution to the energy problems is to make do with less: “We can’t drive our SUVs and, you know, eat as much as we want and keep our homes on, you know, 72 degrees at all times, whether we’re living in the desert or we’re living in the tundra, and then just expect every other country is going to say OK.”

Remind me again how a liberal like McCain got the GOP nomination? Sure McCain is better than the Democrat Party nominee, but not by much. Isn’t there a better choice? Where is the conservative running for President, who believes in small government and free market solutions?

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