Friday, February 3, 2023

that's fair

 How much profit is a business allowed to make? That's my question this morning after listening to the news. The discussion surrounded the Shell corporation making record profits this year. They made 50% more this year than last! Is it price gouging? Or is it that we just consumed more fuel this last year than the previous one? Those questions weren't being talked about. Now I'm certain there isn't a simple answer to any of that. Given every state, along with the federal government imposes taxes on every gallon sold, that surely has to affect the price. Also not allowing drilling for oil in certain areas, no pipeline, and a dozen other factors the cost of doing business surely increases. Still, the corporation managed to increase their profits significantly. Is that wrong? Is there a limit to how much profit can be made?
 Shell certainly doesn't have a monopoly on the market. So, you can't say that is the reason. Many different brands and blends of gasoline and other fuel products are readily available to everyone in the country. If Shell gasoline was so much more in cost than the others that could explain their profit. They're not, however. Shell prices are in line with everyone else. I'm not attempting to defend Shell oil or any oil company for that matter. No, my question is, should the government control how much profit you are allowed to make? If I'm selling candy bars or skyscrapers should the government set my profit margin? You can only make 2 cents on a candy bar and 100,000 dollars on a skyscraper. It is a question of free enterprise.
 There was no accusation of wrongdoing. No one was saying that Shell Oil had done anything improper. The only issue was they made too much profit. If we are going to say that a corporation is only allowed to make just so much, wouldn't we have to extend that to individuals as well? You can't make too much! Where do we set the cap? A million a year, two? How much "profit" are you allowed to make. I wrote a hit song, how much can I make off that before it's too much? How much can a master mechanic make? What about Doctors, Lawyers, and Indian Chiefs? How much can they make? Remember the issue wasn't what they were charging, the issue is making too much profit.
 We all spend our money on different things, placing value on those items. Some are willing to pay hundreds of dollars for designer handbags while others just think that's crazy. How much profit do you think Gucci makes on one of their handbags? I have no idea, but I can tell you for sure it is more than Walmart makes on the knockoffs! Is Gucci making too much profit? Recently I'm hearing about the cost of concert tickets. Are those artists making too much profit? After all, all they need is a few instruments, a stage and some lights. Surely their costs are quite low compared to the profit they make. Sounds like they are making too much profit to me.
 How can we control that? Are we to establish a cost to profit ratio? Let's say you can only realize a gross profit of 4% above your expenses. Would that be fair? If it cost me a dollar to produce a product, I can only charge 1.04 for that product. Anything above that would be excess profit. I'm no business major, no economist, and realize I have very little understanding of business in general. I do know one thing for certain. People go into business to make money. That's the reason for that. Despite all the advertising, the rhetoric, and impassioned statements claiming otherwise, the objective is to make money, make a profit. Is there a limit on that? I can only make so much? 
 Of course, if we were to go to a strictly digital economy, no cash transactions, the government could more closely monitor that situation. If you start to show too much profit, you are restricted! Excess profits will be confiscated. Those excess funds could then be distributed to those less fortunate. It would only be fair, right? 
      

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