It is hard
not to notice the increase in gas prices in this country. However, if you have
traveled abroad you will know we are real pikers in terms of gas prices: (As of June 30, 2010) 1. Asmara, Eritrea | $9.59 2. Oslo, Norway | $7.41 3. Copenhagen, Denmark | $6.89 4. Hong Kong | $6.87 5. Berlin, Germany, and Monaco, Monte Carlo |
$6.82 6. London, U.K. | $6.60 7. Rome, Italy | $6.44 8. Paris, France | $6.04 9. Sao Paulo, Brazil | $5.69 10. Seoul, Korea | $5.55 11. Tokyo, Japan | $5.40 12. Singapore, Singapore | $4.81 13. Nairobi, Kenya | $4.31 14. Mumbai, India | $4.25 15. Santiago, Chile | $4.18 16. Johannesburg, South Africa | $4.05 17. Sydney, Australia | $3.84 18. Toronto, Canada | $3.81 19. Beijing, China | $3.71 20. Bangkok, Thailand | $3.64 21. Buenos Aires, Argentina | $3.58 22. Havana, Cuba | $3.64 23. Karachi, Pakistan | $3.02 24. New
York, U.S. | $2.85 25. Moscow,
Russia | $2.80 26. Mexico City, Mexico |
$2.45 27. Lagos, Nigeria $1.62 28. Dubai City, United Arab Emirates $1.57 29. Cairo, Egypt | $1.17 30. Kuwait, City, Kuwait | 85 cents 31. Riyadh, Saudi Arabia | 45 cents 32. Tehran, Iran | 32 cents 33. Caracas, Venezuela | 6 cents
Obviously if
you live in an middle eastern oil producing country you can do well, but most
place pay far more than we do; we subsidize oil companies, so we would have to
figure out how much of our tax dollars apply to each gallon to really know what
we pay.
We also know
that this has become a issue where the GOP is placing blame on Obama for not
fixing it, citing his stand on the Keystone XL Pipeline and energy policy; red
herrings.
The real
problems Robert Reich points on in his blog is our failure to regulate Wall
Street. 80% of our oil needs are met locally, we even export some. But Wall
Street is betting on future higher
prices and that causes prices to rise. He points out “Financial speculators historically accounted for about 30% of oil contracts,
producers and end users for about 70%. But today speculators account for 64% of
all contracts.” The commodity Future Trading Commission is trying to limit
how much speculators can bet in ol future (Dodd-Frank power); it was issued in
October but won’t go into effect for another year, while Wall Street goes to
court to stop the rule.
But you don’t
hear the GOP talking about any of this. Truth just isn’t very important if your
mindset is just to beat Obama.
"we subsidize oil companies"
ReplyDeleteHow exactly do we do that?
You don't know? Google it dude. Why do you suppose we have been able to keep our prices lower than Europe for ages?
ReplyDeleteOil Industry Subsidies $21 Billion - Ethanol Subsidies $60 Billion
Ronald Bailey | May 16, 2011 http://reason.com/blog/2011/05/16/oil-industry-subsidies-21-bill
By going to that one article you link to, a person actually ends up knowing less about the subject.
DeleteSo much of what is called subsidy is not subsidy at all, but is instead tax break. I'd love to see something about subsidies which is not erroneous.
The second paragraph, for example, in the link you mention, mentions $21 billion which is a tax break (a gift of $0, as it lefts people keep their own money) and isn't subsidy at all.
The definition of subsidy, "A sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service...", does not include tax breaks at all.
The problem with googling on this particular issue is that you have to did really hard, or you might find links such as the one you present which has in its very title "Oil Industry Subsidies $21 Billion", but the detail in the very same article on this specific amount indicate that it is not a subsidy at all.
This link makes the difference very clear. Interestingly enough, both links are from the same place, the web site of Reason Magazine, but only the second bothers to address actual subsidies.
-----------
As for "Why do you suppose we have been able to keep our prices lower than Europe for ages?"
there are entirely different factors in play that aren't related to subsidies to oil companies. From CNN:
"Many European nations tax gasoline heavily, with taxes making up as much as 75 percent of the cost of a gallon of gasoline", compared to a fraction of this in the US (see more details here
You say tomato I say tomato... I do know the difference between a subsidy and a tax break but most folk realize they amount to the same thing, an advantage others don't get.
DeleteIt's not the same thing at all. There is a profound difference.
DeleteIf a mugger steals your wallet and lets you keep your shoes, do you consider it a gift that the mugger did not steal your shoes also?
If anyone thinks they amount to the same thing, they are badly misinformed on the facts.
And as for "advantage", lets look at what advantage Exxon has had. Looking at one company, for one quarter.
DeleteFrom this link
"ExxonMobil paid $8 billion in income taxes to various governments in the first quarter, which is about $22 million in income taxes each day, or almost $1 million each hour."
Sorry, being robbed by the ruling elites for such a massive amount is an "advantage" I'd rather do without. Let Exxon keep this "advantage".... if not for the fact that this massive plundering, this naked greed of the government detailed here results in a bite out of all our our wallets at the pump.