 |
 |
In spite of the claim below, I continue to assume that the oil companies are willful participants in the raping of the consumer. Every time there is a hint of a supply glitch, the price goes up immediately. I never notice the price go back down with such speed. It would take a lot of convincing to get me to agree that they sit and wait for the Saudis and Venezuelans to decide their level of profit. I'm thinking the oil biggies will seize any opportunity, even a national tragedy, to pump more profits out of our pockets. Call me a cynic. I am planning to reduce my family's dependence on foreign oil and on global corporations. I'm selling my house in the suburbs, which were designed around the car, and going back to the city where I grew up. And I'm waiting for an affordable hybrid vehicle while I board Buffalo's infamous 'subway to nowhere'. It's too bad I can't do the same with drugs. In the future I will need more and more. The limitations of capitalism really surface in the health care industry. What's in the future for me? Probably I will be sucked dry by hospitals, neurosurgeons, drug companies, and some nursing home, if they can catch me. Enjoy Fall! Rick McGirr Email: [log in to unmask] ----- Original Message ----- From: "K. F. Etzold" <[log in to unmask]> To: <[log in to unmask]> Sent: Friday, October 28, 2005 12:09 AM Subject: Drug Company profits > There is one of those entertaining ads in todays NY Times by > ExxonMobil > on the editorial page. It explains that oil companies make only > average > profit (2Q 2005), pre Katrina. But that is only part of what got my > attention. Wanna know who gets the highest profits? You guessed it, > Pharmaceuticals at 18.6% profit, right after number one, Banks with > 19.6% profits. So there is part of the reason why drugs are so > expensive. So don't get sick. Now, rounded, 1/5 profit ain't > bad. > All US industry has a 7.9% profit. > > I guess both drugs and energy have a rather inelastic demand ie. a > small shortage drives the price up very steeply, which is what we > are > seeing now in energy. An interesting sidelight is something I heard > today on NPR (National Public Radio). The statement was that the oil > companies do not control the price of their product, it is the > commodity > traders. So the oil companies apparently have only limited control > of > the prices. I have wondered why the oil companies cannot be public > minded and cut the prices; apparently they cannot because the > traders > drive the price up or down depending on the available supplies. So > the > oil companies now enjoy exorbitant profits because of the shortages. > Create a shortage .... > K. F. > > ---------------------------------------------------------------------- > To sign-off Parkinsn send a message to: > mailto:[log in to unmask] > In the body of the message put: signoff parkinsn ---------------------------------------------------------------------- To sign-off Parkinsn send a message to: mailto:[log in to unmask] In the body of the message put: signoff parkinsn