One for you. Two for me.

The recent article by Robert Weiner and Cael Pulitzer reveals the kind of thinking performed by political “experts” who lack a strong foundation in economics. While recent oil industry profits seem obscene to some, they are expected by those who understand basic economics. Oil prices are determined by market forces, not corporate executives looking to gouge consumers. Weiner and Pulitzer attempt to display their economic “prowess” by pointing out oil supplies have increased but prices haven’t dropped. Conveniently, they ignore the demand side of the equation.

People who demand our representatives confiscate oil profits appear ignorant of the fact that the government collects more in taxes than oil companies earn in profit. From 1977 to 2004, taxes on gasoline gave state and federal governments $1.34 trillion while oil companies earned $640 billion. Already, the politicians consume two-thirds of the pie but they crave more. Now let’s ask, “Who’s guilty of greed?”

[Letter to the Editor - Detroit Free Press. Published 02/13/2006]