Here are a couple of interesting factoids on those incredible oil company profits that I’ll bet you haven’t heard. First:
While crude oil has gone up from about $66 a barrel to almost $119 — an 80 percent increase during the last year — gas has gone from $2.71 a gallon to $3.60, an increase of only 33 percent.
In other words, the oil industry’s profits have not been keeping pace with the rising cost of their primary raw material.
Mutual fund giant Vanguard . . . has more than $18 billion in ExxonMobil stock. Most of that is owned by investors in the company’s S&P 500 index fund and its total stock market index fund. And it’s not just Vanguard. Almost every major mutual fund company owns oil stocks. Two of Fidelity’s mutual funds, for example, rank in the top 10 holders of ExxonMobil stock.
The oil companies are “broadly owned by tens of millions of middle-class Americans, anyone with a pension plan or 401(k) or IRA account, a mutual fund,” Dougher said. “They’re really the owners. So, when their stock portfolios go up, that’s really who benefits.”
In other words, if Congressional critics act on their threat to rein in those evil corporate profits of the oil companies, guess who’s gonna feel the pain? That’s right — the millions of small investors who are depending on those profits to finance their retirement.
It’s called “free enterprise,” people. Why aren’t they teaching this in high school anymore?