Record Profits in an Ailing Economy

This week Exxon Mobil reported record profits for a US company. After posting 11.68 billion in the second quarter which would be a record for a mere 90 days when they posted 14.83 billion in the third quarter on 137.7 billion in revenue. This is before any one-time adjustments, but even including those their earnings were still 13.7 billion. And do not mistakenly think Exxon is managing their business so shrewdly to accrue such a hefty payoff. Chevron, the second largest 'energy' company in the US, posted earnings of 7.9 billion in the same quarter despite weathering the effects of the hurricane season. In fact, the so called Big Five (Exxon, BP, Shell, Chevron and ConocoPhillip) posted total earnings of roughly 50 billion in the past quarter. And these earnings are being posted as the US, if not the world, is experiencing a recessionary period.

50 billion. That is the exact number the US has pledged to help defeat world poverty. Not fully understanding McCainsian theory of trickle down I wonder how many of these dollars will help feed the hungry. I know that in Q2 of '06 when the Big Five earned 34 billion or 16 million per hour in that quarter that we only saw the price at the pump continue to go up and I did not witness any major contributions to help those most in need. And although I have been one of the lucky few (at least so far) and did see my own income stay stable during this period I am actually worse off now as my paycheck has much less purchasing power.

I do not begrudge a company creating value for their shareholders and I realize that no one company is going to forgo an opportunity to increase their share of the pie. It is not in the spirit of true capitalism to do so. What we can ask is that these companies across the globe are asked to participate in funding other initiatives like alternative energy programs, clean water, etc. that will help the world's people. I realize that this may only further their profits, but if regulated to some degree it will truly trickle down to those in the most need and everyone in between. I also realize that this may be wishful thinking, but their is so much opportunity for these monies to do good that you have to ask the question.