Handing someone a fist full of cash in exchange for a vote is illegal. Telling people you will give them money if they vote for you is immoral. Barack Obama’s latest gimmick is to tell voters he will “immediately give every working family in America a $1,000 energy rebate and pay for it from oil company profits.” This is a nice way of simultaneously buying votes and inciting class warfare, i.e. “rich” companies/people will pay for the bribe.

It’s extremely easy for politicians to promise to give people money that is not theirs. It’s a win-win for everyone except the people from whose pockets the largess is dispensed. Unfortunately, this kind of give-away will do nothing to solve the energy issues we face. Prices will remain high – in fact, may go higher since demand will be artificially stimulated – and all the structural issues facing energy markets remain.

Voters beware! As nice as it sounds to be receiving an undeserved present, remember that it is wrong to steal. Do not covet that which is your neighbors. Ironically, since most working adults have IRA’s, 401(k)’s, and other pension plans, most of us are owners of the very companies Obama is promising to loot.

One final note on the arithmetic of this nonsense:  In 2006 there were roughly 133 million tax returns filed. Assuming each return represents an individual, and therefore, half of the $1,000 bribe, it can be roughly estimated that Obama is promising to take $66.5 billion from energy companies! The two largest US integrated oil and gas companies are Exxon-Mobile (XOM) and Chevron (CVX). Together, these two companies earn $63.3 billion annual net income. I’m not sure of the legality of imposing this new tax on foreign firms, but as far as US oil companies go, this would entirely wipe out their profitablity. Good luck filling up your gas tanks in a Democrat-controlled America!

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