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Old 12-28-2003, 04:19 PM   #54 (permalink)
smooth
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Quote:
Originally posted by Rekna
Do you really think the US went into Iraq for oil? Let's see we are spending 86 billion on rebuilding Iraq, the cost for us to go in there wasn't cheap either. It would be a pretty silly investment to spend 100's of billions of dollars to get less than that in oil. If we were there for oil why haven't oil prices dropped? You conspirocy therioists are great for a laugh now and then.
Your argument doesn't do much to contradict the claim that our actions are directed at securing oil interests.

First, particular oil corporations will be reaping the profits. The tax payers, as a whole, are funding the war process. In fact, this is the first time in history that taxes (mostly paid by the wealthy, but disproportionately affecting the non-wealthy) have been lowered while we shift into wartime development and actions. Based on this, the argument is that a few are, or will be, benefitting from the profits paid for by the many. This is being illustrated by your evidence. The 89 billion dollars is coming out of public coffers into the pockets of wealthy individuals in corporations.

Second, securing oil interests won't lead to cheaper gas prices. What incentive would oil corporations have to lower prices simply because they have more lucrative contracts? They will reap more profit. In fact, it seems that those securing rights to lucrative oil contracts would be most supported by right-leaning capitalists for their initiative--not that those people would demand a return on the public investment. I find this odd. In all other instances capitalists claim that they should reapn profit because they bear the brunt of the risk during the investment phase. Here, however, the US public is bearing the brunt--if Iraq doesn't work out, we eat shit--but we don't expect to see any return on our investment. This debate was already squelched in Congress when they decided not to require Iraq pay back the money being spent (the corporations sure don't have to reduce their profit, however).

I would also point out that oil is provided from various groups that act to control both production and distribution of oil into the market. Even assuming sufficient market forces would compel corporations to fluctuate their prices when a substantial reduction in their bottom line occurs, how would you envision this to occur in a controlled market environment?

In sum, the public is paying the costs while wealthy individuals are or will be reaping the rewards. The initial monetary layout is irrelevant to their profit margin and can't be counted as evidence that we aren't acting out of economic interest for those few corporations and their CEOs.

Once corporations secure lower costs of oil sources and production, they will achieve a higher profit margin. They won't lower their prices and "pass the savings to the consumer." The absence of lower prices (although, I will point out that our pump prices have steadily dropped throughout the past year, so your premise is inaccurate) at gas pumps can't be used as evidence that we aren't acting out of economic interest for those few corporations and their CEOs.
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