Greedy Chavez Manipulates Petro Market into Record Money Grab

Chavez's Venezuala has earned record petro income due to increased petro prices. Sadly, due to socialist "reforms", this inflow of cash will result in far fewer income gains for fewer residents than would a free market system. One poor consequence is that his nation's oil reserves will not benefit as much from increased exploration and development as would occur under a free market. Witness the difference in Russian petro development -- and consquential Russian government petro income, and income distribution to Russian people -- under socialism, versus now within a free market. In the US, meanwhile, a diversified economy premised on free markets means that whichever way the oil market goes, the overall economy benefits. In the case of higher petro prices, US petro companies see their fixed profit margins yeild increased income, which will result in upgrading to better exploration and production equipment, and further exploration. When this inevitably leads to lower petro prices, other portions of the US economy will see their own profit margins yeild higher incomes. No wonder so many poor people in Venequala immigrate to the US... and never migrate back!


Nadir said...

It is shameful that you can manipulate a story about ExxonMobil's record profits and turn it into an attack on Chavez. The fact that Exxon's tactics will benefit their shareholders and are harming US consumers is self evident.

Meanwhile, Chavez has ensured that oil profits from Venzuelan firms go to community improvement in that country while they have also offered discounted prices to US consumers to make up for the greed of US oil firm.

Since you are so gung ho about paying more in gas prices, I'm sure you won't mind filling my car up once a week in addition to your own...

Nadir said...

Witness the difference in the number of Russians living in poverty with no safety net and no jobs now that Russia has a free market economy.

Witness improvements in Venezuela's health care for poor citizens.

Paul, I know you only believe rich people are worthy of a real chance at life, but some of us believe that all people are worthwhile.

We'll see how you feel about it when (God forbid) you are laid off from your cushy job at Ford due to American's buying fewer gas guzzlers. Go ahead and promote your own demise if you want to. I'm sure your children will appreciate it.

Paul Hue said...

As for Russia: My readings indicate to me that the average Russian is doing much better under a free economy than under socialism. The government certainly gets more petro dollars now, and the nation now produces much more petro, than under socialism.

As for Venuzuala: I don't know if that nation has ever had a free economy, rather than pockets of capitalism within an enviornment of curruption and rigged elections. I side with the economists who predict that the nation's oil production will fall now that capitalism has diminished within that industry.

Paul Hue said...

Nadir: You and I both want the same results: a maximum amount of wealth and prosperity for the most people, and the best chances for people to work their way upward. We simply disagree on what methods will best achieve these goals.

Nadir said...

Right, Paul. You believe that rich people in their generosity will allow money to trickle down to poor people. I believe, and history proves, that this never works.

Paul Hue said...

Rich people's "generosity" has nothing to do with how economics works. I am very curious for a history lesson from you showing that socialism leads to prosperity. You can find very isolated examples of a socialist nation like Cuba achieving a few victories, such as a few aspects of its medical or education system. But overall prosperity and opportunity has never occured within socialism. Just consider the net migration patterns.

The US economy is very strong, which is why Americans are puchasing so many cars... just not cars made by Ford and GM. As in all economies, some companies are doing poorly. The poor performance of Ford and GM in no way reflects a poor US economy. The car industry overall in the US is experiancing a boom, in concordance with the overal growth of the US economy.

Another sign of the strong US economy is the continuous flow of immigrants. As countless Cuban immigrants will tell you, for peopel who work hard and make good choices, the US is a far better home than Cuba. Lazy people might do better in Cuba, but they are too lazy to make the trip.