Barack Hussein Obama... Any Way You Slice It... He's a Radical Socialist!

As a follow-on to my last piece, specifically dove-tailing on the subject of the rising cost of gasoline... let's take a look at the latest factual evidence that Barack Hussein Obama doesn't have a clue as to how capitalist economics work. I would proffer that if Obama didn't have his anti-American pea-brain stuck up his primary posterior orifice, he wouldn't put forth such policy statements about instituting a "windfall profits tax" on oil companies.

Let's take a couple of minutes to see how every "for profit" and "not for profit" business works, and then I think you'll agree that Obama is an economic moron.

Let's look at the International Widget Company (IWC). IWC knows that their cost of goods sold is made up of many components which drives them to determine the price at which they will sell their widgets... Raw materials, payroll, payroll taxes, federal taxes, state taxes, all other taxes, capital equipment to turn the raw materials into widgets, accountants, lawyers, governmental licenses & permits, utilities, etc... Well, you get the idea.

In addition to these considerations there are some other very important factors which socialists like Barack Hussein Obama fail to fathom in the world of capitalist economics. Let's take a look at two basic components which tell the tale of success or failure in the corporate world. In a "for profit", publicly traded company, the two primary metrics are "revenues" and "earnings per share".

Companies routinely advise Wall Street (which also includes working class IRA, mutual fund and 401(k) holders, and the elderly) how they expect their business to perform over the next several months. Have no doubt! Corporate leaders of IWC will meet their numbers! After all, that is how their Board of Directors evaluate their effectiveness in leading the corporation and "delivering the goods"!

OK... So some "FoolOnCapitolHill" (Barack Hussein Obama) decides in their feeble, socialist mind, that IWC has made "obscene profits" while selling their widgets. And this FOCH tells his fellow FOCHs that they need to teach IWC a lesson and levy a windfall profits tax... And they do! What happens next? (Glad you asked!)

IWC now has several options to consider. Let's explore these option, but remember this... The CEO, CFO, COO and and every other C-level yahoo who is incentivized by making both their revenue & earnings per share number WILL MAKE THEIR NUMBER... NO MATTER WHAT!!! Have no doubt about that!

So the FOCHs levy a big tax... They expect IWC to pay the tax... If IWC pays the tax, those C-level guys don't hit their numbers & don't get their bonuses (Remember... This AIN'T gonna happen!) So what is a poor CEO to do? It's just this simple: (A) Raise prices to cover the cost of the tax; (B) Cut expenses; (C) Both. Guess what? "(C)" is what happens more often than not. This means that Barack Hussein Obama & The FOCHs attempt to "punish" IWC have instead raised prices for widgets, fueled inflation, cost working people their jobs, increased unemployment & unemployment claims, slowed consumer spending and consumption, cost other working class jobs in other businesses which relied upon the laid-off workers from IWC who used to patronize their businesses... Well, you get the idea! Too bad that Barack Hussein Obama & The FOCHs don't seem to get it!

In other words, trying to "punish" companies for doing what it is they are in business to do never does punish the company... It punishes consumers (The poorest of the poor most of all) and sets all of us back. And in the process it also negatively impacts the share price of IWC (Or ExxonMobil, Shell, etc...) which negatively impacts the retirement income of the elderly, school teachers, firefighters... EVERYONE!!!

In closing, I believe I can sum this up in the following... "Barack Hussein Obama... Scary As Hell"!