Price Gouging and Windfall ProfitsEvery couple of years the crazy lefties pick a new villain and tell the American public that we are being price gouged by said villain. How are they sure that we are being price gouged? We are being price gouged because that industry has just reported "Windfall Profits". Every time I have gone and looked at the real numbers I have discovered that the very same industry charging essentially the very same prices has recently had losses or very small profits for many quarters running. This rarely mentioned fact leads me to believe that the industry isn't price gouging me. A more likely explanation is that the profits in that industry are cyclical, sometimes for reasons obvious to me and sometimes for reasons not so obvious to me.
Who is really price gouging me? To answer that question, consider the following things that we all spend money on.
If you add up all the taxes that you pay (and you should include the money your employer hands over in taxes on your behalf that isn't counted as "income") and you make six figures you probably pay around half of your total income in some form of tax.
- Social Security tax
- Medicare tax
- Federal Income tax
- State Income tax
- Workers Compensation tax
- Capital Gains tax
- Property tax (if you rent you pay this indirectly)
- Sales tax
- Energy tax on your electric bill
- Gas tax at the pump
- Telephony taxes
- Federal Aviation taxes on every airline ticket
- Road use fees for license plates
So whose price gouging me? Government is. I give them more than half of every dollar I earn for which I get the following things:
- the US military
- associated intelligence agencies and federal police forces
- the US Coast Guard
- the US border patrol & customs
- fire fighters
- roads to drive on
- air traffic control
- government schools
Ah, the savvy lefty politician says, but you are paying largely for the Social Security and Medicare you will get when you are older and retired. HORSE PUCKY! I will never see a Social Security check. I say this with more certainty at 41 than I did at 21. The math simply does not work. By the time I am eligible the program will HAVE to be means tested. At this point I'm not sure I'll even get Medicare. It's almost as flat broke as Social Security thanks to the politicians in Washington robbing both systems blind for forty years.
If I had all the money that the federal government has stolen from me in the form of Social Security and Medicare taxes in the last 20 years I could retire quite comfortably now without needing government assistance ever. Instead I'll be paying ever higher chunks of my earnings in those taxes for many years to come with little hope that I'll see ANY return on that "investment".
So the next time you hear some left wing politician telling you that the oil industry or the health insurance industry or some other industry is price gouging please remember that it is that very politician who is the real price gouger. It is very hard to stay in private business while price gouging. The federal government has been doing it for over a century and I see no end in sight.