Do you really know what the profits of an oil company are? C’mon, give us a real figure.
How about the record profits of media outlets supporting this insane 2 year primary? How about the record profits of Hollywood? How about the record profits of trial lawyers? You know nothing about economics.
First, you are right in that I know very little about economics.
Second, I wasn’t blaming the oil companies for making profits. Hell, government makes about 3 times off fuel taxes that oil companies make off taxes.
What I was baffled by is, why do oil companies make their maximum profits just when material costs hit their maximums. This has me completely confused. Every time crude shoots up in price, oil company profits shoot up in price. Shouldn’t high material costs HURT their profits. Shouldn’t their profits maximize when material cost plunge, meaning they have a lot more room for profits.
You sound knowledgable in economics, so this should be a very easy thing for you to explain in plain English. Thank you.