answer in a word: Profits In two words: Oil profits In a few more words: Mutual corportate aid for profits in oil and big cars. Now my turn to ask the question: Why must Joe American pay more in taxes (for corn subsides to the big agriculture firms like privately owned Cargill, world's largest family company.*) more than twice as much for car fuel than tropical alcohol, and more for his food than necessary? Oh No! - That is too easy as it has almost the same answers your question does. (Difference is GWB set up the corn to alcohol program to gain greater base of very rich campaign supporters.) ------------------- *I learned that years ago, when I realized the billions they were getting from the tax payers** - I.e. to get a small piece of the action, I tried to buy stock in Cargill. - It does not exist. I am "pissed off" at Cargill so always buy Bunge's oil prodiucts, but in the interest of "full disclosure" I admit I do own stock in Bunge, which was originally a Brazilian company and still gets large part of its profits from Brazil's farms - sell fertailzer to them etc. also. ** They also make alcohol and collect the special per gallon subsidy on that too.
Sort of related since you brought up cars.Is the oil and gas companies also responsible for the US not already having a cheapo car like the Tata Nano, that just rolled off the assembly floor friday? India a 3rd world country can do this car but the US cant? It just sickens me on all this,mostly cause my hands are tied so to speak.I have a 1/2 brother that just hates the US he lives in.Dont even ask him about subjects regarding the US.At least not unless you have a few hours to burn.
For US having big "gas hogs" instead, yes, to a large extent.* Oil companies liked Detroit to make the gas hogs for obvious reasons. Detroit liked to make them too as the profit margins and especially the absolute profits were much higher per car. Most people only buy one car so Detroit did not really like to sell small cars as that killed the sale of a big profitable gas hog. The US was the only large volume maker of gas hogs so they could charge whatever maximized their profits. A smaller gas efficient car, as made in Europe or even Brail (about 3 million of them annually now, which can use any mix of gasoline of alcohol) could be imported to the USA and even with the tariffs, this set a limit on the per car profit Detroit could make when selling a small efficient car. Detroit spent a lot on "Keep up with the Jones" TV ads etc. to make Joe American think he really needed that big gas hog to have any respect. Some of the least psychologically secure Joes even replaced the tires with big ones and jacked up the body to make "monster cars." Feel good about their status, etc. Madison Avenue played a big role in keeping the profits flowing to Detroit and big oil, but were well paid for the dis-service they did to Joe, playing with his self image, self worth, etc. Finally this false house of cards fell down, but mainly because Joe could not go deeper into debt. There is only so much blood you can suck out of Joe before he dies and then you do too. Can you say GM & Chrysler in one breath? If so you get what I mean. ---------------- *The government, under both Dems and Republicans, did it share of "stupidity support" too by keeping tax on gasoline about half of that which the rest of the world was paying.
