"And After *I* Bail Them Out,
I *Own* Them. Oh, and
Death to America!"
Posted on 01/17/2016 10:27:10 AM PST by Lorianne
Oil prices have broken below $35 per barrel. Job losses in the industry are already over 100,000 and still climbing. Yet, no word from the Obama administration about a potential bailout of this important sector of the American economy. Why were Chrysler and GM bailed out while the oil industry is left to suffer a financial reset at least as sharp as what the automakers went through in 2008-2010? The answer lies not in economics, but politics, specifically union politics.
Economically, of course, there are benefits to the fall in oil prices. Because the U.S. is a net importer of oil, our economy wins as oil prices fall. Everything the oil industry loses from these lower prices are exactly offset by gains in oil-consuming industries thanks to lower input prices; thus, the net effect from domestic sources is zero. Then, oil-consumers gain even more because they also save on imported oil.
However, this is not necessarily that different from the auto industry’s recent downturn. When automakers had lots of excess capacity, prices were falling and plants were being closed. That looks a lot like oil companies stopping new well development and even turning off some existing wells as prices drop. Oversupply in the auto industry was providing consumers with an opportunity to buy at attractive discounts. America is a net importer of cars, so the gains to consumers were larger to the losses to domestic producers.
(Excerpt) Read more at forbes.com ...
I think Obama is bailing out OPEC to keep the price of Oil low
Can’t blame everything on Obama. Obama wants high oil prices.
Cruz emphatically said no more bailouts. Unfortunately he only has one vote.
>>Whaaaa! Everyone deserves a bailout!
That is the plan. Bail out every industry that has made many billions of dollars in the past while making sure that you and I pay the full income taxes on the $11.35 that my savings account made last year.
Eventually, we demand OUR bailout and we get the socialist basic living stipend (or whatever they call it) so our employers can pay us even less for our work, but the nonworking people get a new entitlement.
Everyone wins (except workers....again).
The article was about Obama bailing out the UAW democrat donors. He broke contract law when he did that and I still can’t believe he did it.
Where do I send my bills? I’m still waiting for hussein to pay my rent and send me an obamaphone.
“Can’t blame everything on Obama. Obama wants high oil prices.”
Admittedly, he did do a fabulous job on electricity prices.
"And After *I* Bail Them Out,
I *Own* Them. Oh, and
Death to America!"
The article was about using that bailout to justify another bailout in another industry.
Doesn’t really matter what the industry is. All of them will use previous bailouts to justify asking for a bailout.
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