Stephanie Ruhle proves that the oil companies rob the American people to transfer wealth to shareholders.
Stephanie Ruhle hits the plutocracy where it hurts
The oil company executives were drug up to D.C. hearings virtually. Democratic congressperson told them a few truths as they chewed them out.
“Americans today are facing extraordinarily high gas prices at the pump,” said Rep. Diana DeGette (D-CO). “The average price of a gallon of regular gasoline. One year ago was under $3. Today, the average is over $4 a gallon. And in some places, it’s nearly $6 a gallon. These prices are straining our constituents’ budgets and their patience. Why is the price of oil coming down? But the price at the pump is still near record highs?”
Rep Frank Pallone (D-NJ) went a bit further.
“The American people are getting ripped off as these companies choose to keep production low,” Pallone said. “So that their own profits stay high.”
Rep Kathy Castor (D-FL) said it was time for oil companies to lower prices rather than padding their bottom line. Of course, in a capitalist society where the energy sector is entirely under the control of corporations, that is the job of the executives to maximize profits for their shareholders and increase their bonuses.
Rep. Kim Schrier said it feels like both gouging and profiteering. On that, she is correct. But that is our economic system. Barring a change, those are the rules, the avenues available to those with unlimited pricing power to extract all they can. The inflation-generated profits are for the benefit of their shareholders and their bonuses.
It does not help that every Republican lies to their constituents instead of blaming the only entity with actual price controls. They accuse the Biden administration of a power he does not have.
Oil companies justify their prices by saying they need it to increase supplies, more drilling, etc. But Stephanie Ruhle exposes the fraud that they are.
“It is true they do not set the price of oil,” Ruhle said. “And it is also true that during the height of COVID, when oil prices dropped, so did their profits. But as oil prices have gone up last year, they made more money than they have in eight years. And since the start of this year, they’re expected to make even more. But here’s what matters. Where are they spending all of that money? On buybacks and dividends for shareholders, not increasing production.”
Stephanie Ruhle is technically correct. But practically, the oil industry is one colossal cartel designed to maximize profits, and they work together. We are swimming in oil, as I have explained in other posts. But they work on extraction and delivery in a manner to control pricing. And it is all legal because it is the definition of our economic system.
We know corporations are making record profits, some before the inflationary spike we are now seeing. We also know that we are not experiencing any substantial shortages of the products and services we want and need. Those two realities make it the fact that corporations have manufactured our inflation rate with their ability to control prices. They have unlimited pricing power, and we have none.
America must bite the bullet. They must nationalize industries that are vital to our existence. The energy, health, and specific sectors of our banking sectors do not belong in the for-profit domain. Why? Because they can prevent the economic success of the masses as they have pricing power over critical products and services we cannot choose to avoid. That makes them our financial gods. That is the power that belongs to the people, not the wealthy, greedy, power-hungry shareholders and bonus-seeking executives.