Huffington Post Reporter Misunderstands Energy Economy

Dan Froomkin tries to stir up hatred of people who work for, and invest in, oil companies:

A good chunk of these profits is coming right out the pockets of the American public, thanks in part to astronomical gas prices and to $4 billion to $8 billion a year in deficit-increasing tax subsidies that oil companies continue to get, long after the incentives those subsidies were designed to create ceased to make economic sense.

Rather than invest their profits in such things as product development, new facilities, hot talent or research — things that could create jobs, improve consumer offerings and accelerate alternative energy production — three of the five big oil companies are spending large amounts of that money buying back shares of their own stock.

Economics Professor Mark J. Perry has a little fun with this silly story by changing the industry and companies.

On a serious note, people who work for oil firms are investing the way Froomkin says. It’s just invisible and not headline grabbing.  It would be good to eliminate all corporate subsidies and lower the tax rate but people who think like Froomkin wanted the subsidies incentives in the first place.  That’s crony capitalism and Froomkin was for it before he was against it.

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