Michael Medved

That’s certainly the case with the words “obscene profits” --- regularly applied to the recent success of the big oil companies.

We’ve all heard the protestations by various poseurs and politicians, who want to investigate or restrain or regulate or apply punishing taxes to the “obscene profits” of big oil.

The best response to these demagogues and lunatics would be a flat-out declaration: profits are never obscene.

Losses, on the other hand, can be obscene – disastrous, damaging, deadly to employees, stockholders and, ultimately, the public.

Auto companies have suffered major losses --- obscene losses, if you will – so does that make them more virtuous than oil companies?

Profit isn’t a shameful accident for corporations --- it’s their very reason for being. Big profits help them do more of what they did to make the profit in the first place. In the case of oil companies, that means more exploration, development, drilling, pumping, refining, transporting and marketing of the oil that fuels every aspect of our economy. Their profitability indicates that they’ve done an excellent job of doing what the public needs and wants, just as the losses by American auto makers suggest that they’ve done a terrible job at giving the public cars we want to buy.

Why should commentators and politicos abuse companies that do an outstanding job, and call for more support for those corporate citizens that do a lousy job? If we punish success and reward incompetence, that constitutes a sure-fire formula for more incompetence and less success.

Of course, some leftist might say that the profitability of oil companies is no more praiseworthy than the success of drug dealers, tobacco companies, the makers of fattening junk food, and other enterprises that feed damaging addictions.

But sane citizens ought to laugh at the ridiculous idea that the organizations that produce fossil fuel to feed our cars and our industrial base deserve derision as “oil pushers.” Energy companies provide an essential service for the entire society, and for all its members who happen to enjoy the highest standard of living, with the greatest freedom of choice, in the whole history of humanity.


Michael Medved

Michael Medved's daily syndicated radio talk show reaches one of the largest national audiences every weekday between 3 and 6 PM, Eastern Time. Michael Medved is the author of eleven books, including the bestsellers What Really Happened to the Class of '65?, Hollywood vs. America, Right Turns, The Ten Big Lies About America and 5 Big Lies About American Business
 
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