Should Profits be capped?

[Klash]

TweetIs there a ceiling to how much you believe one company should be able to profit?

US oil giant Exxon Mobil posted on Oct. 27 a quarterly profit of $9.92 billion, the biggest in US corporate history, putting the industry in the spotlight over surging energy costs.

Revenues topped $100 billion dollars for Exxon Mobil on record oil and gas prices, even though the company took a hit from hurricanes Katrina and Rita. (story)

Democratic Senator Charles Schumer called for a levy on 'excess' oil company profits to help the US budget deficit. Even republicans (Sen. Chuck Grassley, R-Iowa, Sen. Judd Gregg, R-N.H., Senate Majority Leader Bil Frist, R-Tenn.) seem to be embarresed of the profits being earned by the oil companies. Going as far as pushing for an investigation to see if oil companies are responsible for 'price gouging'.

I am for a completely free market (Laissez-Faire). I find it contradicting that in a 'free' country, a private companies profit is even an issue to the law makers.

[LilFella]

Tweet I don't know but this 3 buck a gallon crap is pissing me off. I remember when it was 98 f*in cents a gallon. Costs me 60 bucks to fill up.

[supasaiyan99]

TweetThere shouldn't be a cap on profits. What ever happened to free enterprise? To levy taxes on a company's profits to aid in deficit reduction is preposterous. What does that company have to do with the deficit? It is the leadership who is mismanaging the budget

[mick-G]

TweetWell, i don't personally, but if an Oil company has a monopoly on the market, they need to be regulated so they have to use fair pricing margins so that consumers don't get gouged.

[Skarhead]

Tweet

Well, i don't personally, but if an Oil company has a monopoly on the market, they need to be regulated so they have to use fair pricing margins so that consumers don't get gouged.

1000% agree here... I was wondering who was making all the profits from the high profits and it's clear who it is now... Theres a gas station by me who's selling for 2.29.. the others are selling 10-15 cents higher.. needless to say that station is CONSTATLY full and the prices have been the same for 2 weeks. so its obvious ther is no shortage, they are raising prices at will.

[T-Man007]

Tweet

Well, i don't personally, but if an Oil company has a monopoly on the market, they need to be regulated so they have to use fair pricing margins so that consumers don't get gouged.

I agree 100% I'm from ATL and I remember when Bell had to be divided up because they were considered to have a monopoly on the phone market. Well, then BellSouth had to branch off with Cingular because that was considered a monopoly. Then, all the prices dropped like crazy due to competition. I for one think there needs to be some kind of control on oil companies. If these assholes are kicking back billions and billions while American people are suffering at the pumps then there needs to be more regulation. OPEC is a monopoly no matter how you slice it. They have no competition what so ever and yet they are allowed to charge what ever the ehll they want to. That is exactly what this countries claims to be 'unfair' but yet they let them do it. Any time a company takes control of a market the government steps in and says 'that's not fair, you must...'. They need to do the same with oil.

By the way, who is still paying $3? Ours is back below $2.50 at most pumps for regular.

[Klash]

TweetA 'coercive monopoly' cannot exist without government intervention (subsidies, grants, minimum wage, tarrifs). In a free market a 'coercive monopoly' would just attract more competitors to the market if it's prices were too high - making both terms 'coercive monopoly' unsuitable. When government makes it hard for small business to succeed through regulations (whether direct or indirect) - that is when a 'coercive monopoly' is possible.

Here's a very informative (huge) site that talks about oil stocks (inventory) and how it plays in the market price of oil, which you don't here much about.

[LilFella]

TweetPhoenix gas prices 2.70-2.80
Tucson gas I saw this morning 2.34

[Rado]

TweetNo caping, let them make money