The Mudcat Café TM
Thread #99746   Message #2092904
Posted By: Dickey
02-Jul-07 - 11:09 PM
Thread Name: BS: Poverty in the USA
Subject: RE: BS: Poverty in the USA
Peace:

That has a certain amount of truth to it because poor people can't afford to donate to political campaigns. They can vote though and that leads the Pols to declare they are going to help them to gain votes.

But I think in the end rich people want to be rich but they don't want poor people to be poor. Maybe some prey on poor people like credit card companies. They charge them more interest and they like to trap people into carrying a balance that they can't pay off. Bank America made a far bigger margin of profit than Exxon but the Boberts of the world and the media (despite the fact that the media is supposed to be under the control of corporations) blame the poor people's plight on Exxon.

Is Being Profitable a Crime?
    Reporters commonly failed to put oil profits in a larger business context. When they cited Exxon Mobil Corp.’s $9.9 billion third-quarter profit, they focused on the raw numbers rather than explaining to viewers that Exxon doesn’t make as much relative to its product as many other industries do. A comparison of profit margins â€" dividing net profits by the amount of revenue the company took in â€" shows that other companies enjoy much higher returns.

    For example, Exxon’s profit margin for its high-earnings quarter (dividing $9.9 billion by revenue of $100 billion) was almost 10 percent. But a look at Fortune’s Global 500 list from July 2005 shows that is not unusual â€" and some companies surpassed that in earlier quarters. Johnson and Johnson showed profits of almost 18 percent in the July report, while Bank of America enjoyed more than 22 percent.

    The media also ignored the largest beneficiary of the oil “windfallâ€쳌: the government. The Tax Foundation’s Scott Hodge and Jonathan Williams noted in an October 26 report that “in recent decades governments have collected far more revenue from gasoline taxes than the largest U.S. oil companies have collectively earned in domestic profits.â€쳌 In fact, “since 1977, there have been only three years (1980, 1981, and 1982) in which domestic oil industry profits exceeded government gas tax collections.â€쳌

http://www.businessandmedia.org/news/2005/news20051102.asp


Keep in mind that Bank America does not produce a material product but a service.

As soon as people declare bankruptcy to relieve themselves from debt, they get offers from credit card companies because they cannot declare bankruptcy again. I consider them leaches.