Posted by
Armanius on Saturday, August 02, 2008 12:48:05 AM
DISCLAIMER: THIS BLOG IS PLAGIARIZED FROM DAMIANO, OF TEXAS, who wrote this great comment in Amanda Carpenter's blog about Obama's plan to take from oil companies and give more money to the "people." I thought it was excellent, and quite on point. Simple math that everyone with a math education past 7th grade should understand.
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Subject: Buy Obama A Calculator
This is not complex math or insightful economics.
1. Revenue= $138 billion;
Profit= $11.68 billion;
or approximately 8.5 % profit, far less that the majority of public companies in the world. Profits are below projections and expectations for this quarter. Since when is a company that fell below profit expectations and that has significantly smaller margins that most other companies consider to have "windfall profits" in need of government control?
2. Let's assume the same profit for 4 quarters: 11.68 x 4= 46.72 billion.
Obama proposes a $50 billion package
46.2- 50= -3.28 billion dollar deficit; assuming that Obama take 100% of the companies profit. Since when is creating ANOTHER deficit a good thing? Who is it that gained from this again?
3. So, we have a $3.28 billion deficit, the largest companies in the nation (and the world) with zero percent profit and everyone gets $500? Sorry, how does this help the economy again.
4. Yes, my math is oversimplified (clearly Obama and his supporters can't understand anything more complex, so I apologize to the smart people out there). To offset my significant margin for error, allow me to provide a buffer. Here is today's market closing numbers, after the news hit that big oil missed it's profit expectations (but there was no additional spending or deficit announced)- DOW -53, NASDAQ -20.75, S&P -6.8. Since when are negatives across the board a good thing?
So... what are we left with? Obama, AGAIN, baiting the ignorant with Robin Hood economics and offer $500 - $1000 for each person that votes for him.
I thought that bribery in campaigns was illegal? If it's not bribery, what is it? This surely cannot be passed off as an economic policy.