Walmart February Sales Disaster

[IDBillzFan]

I would expect consumers to adjust to the tax hikes, but without a doubt, there now is less disposable income for these consumers to spend. It will be interesting to see what sort of impact these tax increases, coupled with higher gas prices and the sequester will have on the economy. What's great about our economy is that we are extremely resilient.

 

The gas prices, in particular, are the unmentioned hellhole for many right now. CNN reported today that the US has seen 32 straight days with gas price increases. Slowly, methodically, gas has jumped to near $5/gallon again. Regardless of why this is happening, the simple fact remains that this will play a significant role in the growth of the economy, and when coupled with all the tax increases handed down from Obama's policies, it should be no surprise that WalMart is having a crappy Q1.

 

Or maybe it's all a mirage because other people seem to have no problem taking their family skiing in Aspen or golfing with Tiger Woods.

[Fan in San Diego]

The gas prices, in particular, are the unmentioned hellhole for many right now. CNN reported today that the US has seen 32 straight days with gas price increases. Slowly, methodically, gas has jumped to near $5/gallon again. Regardless of why this is happening, the simple fact remains that this will play a significant role in the growth of the economy, and when coupled with all the tax increases handed down from Obama's policies, it should be no surprise that WalMart is having a crappy Q1.

 

Or maybe it's all a mirage because other people seem to have no problem taking their family skiing in Aspen or golfing with Tiger Woods.

 

With oil companies recording record profits, we are being gouged at the pump. I think this issue is too important to trust oil companies to fairly charge us. They can single handedly kill our economy. The government really needs to audit and regulate prices to make sure they are fair to both the oil company and the consumers. Did the cost to produce really jump that much in 30 days? I doubt it. They always site the excuse that a refinery is down and restricts production. Well build another refinery so the flow never goes down.

 

Isn't all of the Republicans taking the week off as well?

 

Just my opinion.

Edited February 18, 2013 by Fan in San Diego

[IDBillzFan]

With oil companies recording record profits, we are being gouged at the pump. I think this issue is too important to trust oil companies to fairly charge us. They can single handedly kill our economy. The government really needs to audit and regulate prices to make sure they are fair to both the oil company and the consumers. Did the cost to produce really jump that much in 30 days? I doubt it. They always site the excuse that a refinery is down and restricts production. Well build another refinery so the flow never goes down.

 

Isn't all of the Republicans taking the week off as well?

 

Just my opinion.

 

Funny how that word "fair" keeps cropping up these days, typically followed with the argument that the federal government would make things more fair for everyone.

 

It's equally funny how someone thinks the answer to protecting ourselves against a private, profitable entity that could single handedly destroy our economy is to put it under closre control and scrutiny by a completely incompetent entity that can single handedly kill our economy (the federal government). Maybe the government should just take over all oil production so they can do it more fairly.

 

You know...like health care.

[We Come In Peace]

Funny how that word "fair" keeps cropping up these days, typically followed with the argument that the federal government would make things more fair for everyone.

 

It's equally funny how someone thinks the answer to protecting ourselves against a private, profitable entity that could single handedly destroy our economy is to put it under closre control and scrutiny by a completely incompetent entity that can single handedly kill our economy (the federal government). Maybe the government should just take over all oil production so they can do it more fairly.

 

You know...like health care.

Isn't there a middle ground between both the extreme cases you're painting?

[IDBillzFan]

Isn't there a middle ground between both the extreme cases you're painting?

 

I'm not painting any extremes (beyond the sarcastic comment about the government taking over oil production, which while sarcastic isn't really a stretch given how the current adminstration believes it has the answer to all areas it deems "unfair.") He sees a profitable company as a threat to our economy and I see a government who is a threat to our economy. Neither of us is wrong in that assumption. The only extreme is the liberal concept that the answer is more government regulation and oversight, and that was painted with his brush.

[We Come In Peace]

I'm not painting any extremes (beyond the sarcastic comment about the government taking over oil production, which while sarcastic isn't really a stretch given how the current adminstration believes it has the answer to all areas it deems "unfair.") He sees a profitable company as a threat to our economy and I see a government who is a threat to our economy. Neither of us is wrong in that assumption. The only extreme is the liberal concept that the answer is more government regulation and oversight, and that was painted with his brush.

But zero regulations and subjugating our national interests to that of the free market isn't extreme?

 

I know you're not advocating that in your previous post, I'm just asking where the line is drawn.

[Magox]

 

 

With oil companies recording record profits, we are being gouged at the pump. I think this issue is too important to trust oil companies to fairly charge us. They can single handedly kill our economy. The government really needs to audit and regulate prices to make sure they are fair to both the oil company and the consumers. Did the cost to produce really jump that much in 30 days? I doubt it. They always site the excuse that a refinery is down and restricts production. Well build another refinery so the flow never goes down.

 

Isn't all of the Republicans taking the week off as well?

 

Just my opinion.

 

You do realize that oil prices aren't determined by the oil companies don't you? So basically that nullifies your entire post.

[....lybob]

With oil companies recording record profits, we are being gouged at the pump. I think this issue is too important to trust oil companies to fairly charge us. They can single handedly kill our economy. The government really needs to audit and regulate prices to make sure they are fair to both the oil company and the consumers. Did the cost to produce really jump that much in 30 days? I doubt it. They always site the excuse that a refinery is down and restricts production. Well build another refinery so the flow never goes down.

 

Isn't all of the Republicans taking the week off as well?

 

Just my opinion.

A good read on the subject http://www.oil-price.net/en/articles/oil-and-refineries.php

[keepthefaith]

With oil companies recording record profits, we are being gouged at the pump. I think this issue is too important to trust oil companies to fairly charge us. They can single handedly kill our economy. The government really needs to audit and regulate prices to make sure they are fair to both the oil company and the consumers. Did the cost to produce really jump that much in 30 days? I doubt it. They always site the excuse that a refinery is down and restricts production. Well build another refinery so the flow never goes down.

 

Isn't all of the Republicans taking the week off as well?

 

Just my opinion.

 

Right now the Federal government and Illinois are "regulating" $.63 per gallon in taxes which is substantially more than the net profit the oil companies make on a gallon of gas. The Feds and states are also regulating something like 30 different blends of unleaded regular gas to appease all the environmentalists. We can't decide on a single blend or maybe 2 (summer and winter) to reduce all the refining and distribution costs? Shouldn't we cheer the oil companies for being very successful manufacturers who employ millions of people and provide all the government mandated benefits to those people?

Edited February 18, 2013 by keepthefaith

[TPS]

 

 

You do realize that oil prices aren't determined by the oil companies don't you? So basically that nullifies your entire post.

Crap! You beat me to two responses in this thread, and you are correct with both. The double whammy of the payroll tax rise and gas prices will make this a dismal first quarter.

[IDBillzFan]

But zero regulations and subjugating our national interests to that of the free market isn't extreme?

 

I know you're not advocating that in your previous post, I'm just asking where the line is drawn.

 

Now who's the one painting extremes? The only people who ever talk about zero regulations are liberals unable to discuss a topic. Somehow the liberal answer to every problem (as Fan in San Diego has shown) is "more government to step in to make things fair." This was the basis of my criticism of his post. Those of us a bit more wiser are able to look at the situation and realize more government will never benefit the people, especially when it comes to oil production, because all sides of the aisle get their money from these beasts and the only thing more government will do is increase the amount the beasts put in the campaign coffers.

 

Case in point; Barack Obama was a fierce fighter of ridiculous debt, deficits and oil prices. Now he ignores them all. Why? Did his ideals change? No. He just let his campaign finances dictate his morals. He doesn't care about any of those things, and wouldn't know how to address them if he DID care about them.

 

It's not left or right. It's wrong. And while there are people like me who prefer less government, it doesn't mean we prefer NO government or NO regulations. Just less government.

[KD in CA]

The gas prices, in particular, are the unmentioned hellhole for many right now. CNN reported today that the US has seen 32 straight days with gas price increases. Slowly, methodically, gas has jumped to near $5/gallon again. Regardless of why this is happening, the simple fact remains that this will play a significant role in the growth of the economy, and when coupled with all the tax increases handed down from Obama's policies, it should be no surprise that WalMart is having a crappy Q1.

 

Or maybe it's all a mirage because other people seem to have no problem taking their family skiing in Aspen or golfing with Tiger Woods.

 

Gee, where are all the made-for-TV movies about society collapsing because of gas prices or NY Times stories about oil company executives' campaign contributions?

[3rdnlng]

So, ten hours have gone by and not one person has asked why we haven't had any new refineries built in like forever?

[Fan in San Diego]

So, ten hours have gone by and not one person has asked why we haven't had any new refineries built in like forever?

 

I did refer to that, why haven't they been built? Besides my opinion that the restricted capacity creates a shortage which drives up the price.

 

A good read on the subject http://www.oil-price...-refineries.php

 

Great article. Screw the environmentalists, This country needs cheaper gas.

[3rdnlng]

 

 

I did refer to that, why haven't they been built? Besides my opinion that the restricted capacity creates a shortage which drives up the price.

 

 

 

Great article. Screw the environmentalists, This country needs cheaper gas.

 

Yes, that was my question. Why haven't they been built? It's a rhetorical question on my part, btw. Check it out and form your own opinion. If I just tell you, you'll just attribute it to another right winger's opinion. Find out and make a judgement for yourself.

Edited February 20, 2013 by 3rdnlng

[birdog1960]

Funny how that word "fair" keeps cropping up these days, typically followed with the argument that the federal government would make things more fair for everyone.

 

It's equally funny how someone thinks the answer to protecting ourselves against a private, profitable entity that could single handedly destroy our economy is to put it under closre control and scrutiny by a completely incompetent entity that can single handedly kill our economy (the federal government). Maybe the government should just take over all oil production so they can do it more fairly.

 

You know...like health care.

remove the "take over production" part and i don't find it funny at all....our gov't is meant to protect the citizenry. and maybe a $2 or 3 increase in minimum wage would spur wal mart sales while not hurting business in aspen our pebble beach too much.

[Nanker]

remove the "take over production" part and i don't find it funny at all....our gov't is meant to protect the citizenry. and maybe a $2 or 3 increase in minimum wage would spur wal mart sales while not hurting business in aspen our pebble beach too much.

 

Our government is supposed to provide for the common defense.

[Magox]

remove the "take over production" part and i don't find it funny at all....our gov't is meant to protect the citizenry. and maybe a $2 or 3 increase in minimum wage would spur wal mart sales while not hurting business in aspen our pebble beach too much.

Maybe. Certainly there are a number of corporations that can afford a $2 increase in minimum wages. On the flip side, I'm sure there are a number of small mom and pop businesses that are barely getting by with where wages are today. There would need to be extensive analysis from a truly non partisan study group on this issue. Not so much on the Fortune 500 companies but on small business

[birdog1960]

Maybe. Certainly there are a number of corporations that can afford a $2 increase in minimum wages. On the flip side, I'm sure there are a number of small mom and pop businesses that are barely getting by with where wages are today. There would need to be extensive analysis from a truly non partisan study group on this issue. Not so much on the Fortune 500 companies but on small business

really? $10/hour over a full work year equates to $20k...so a small business increasing wages $2/hr for it's 5 workers incurs this additional expense. all other similar businesses do as well. and prices go up marginally to compensate. alternatively, carve out an exception for businesses employing less than say, 10 employees as has been done on other labor issues (eg "right to work").

 

irrespective of that, it's a moral question from my perspective: should all full time workers be paid subsistence wages thus eliminating the need for taxpayer support of these workers? my answer is a very clear "yes".

[Magox]

really? $10/hour over a full work year equates to $20k...so a small business increasing wages $2/hr for it's 5 workers incurs this additional expense. all other similar businesses do as well. and prices go up marginally to compensate. alternatively, carve out an exception for businesses employing less than say, 10 employees as has been done on other labor issues (eg "right to work").

 

irrespective of that, it's a moral question from my perspective: should all full time workers be paid subsistence wages thus eliminating the need for taxpayer support of these workers? my answer is a very clear "yes".

Yes, really. There is a huge disconnect with the larger American corporations and small businesses. Corporations are doing great, they've been able to benefit off of globalization from cutting costs to enjoying the benefits of more global customers, whereas small businesses are hurt more from added regulations to a weak domestic economy. So yes, it is something that there needs to be more analysis to see if it would have adverse impacts. The question of "morality" should never be used in creating economic policy. It's not a variable that can be used to help determine effective policy. It discounts economic logic and in many cases what is done with good intention in the name of "fairness" or "morality" has the opposite intended outcome. Look at the health insurance law from the president, that is a perfect test case. It is going to be an unmitigated disaster. You know how many people are being dropped by their employers health insurance group plan because of it? A LOT

 

Many businesses would rather pay the fine and add extra compensation to their employers to replace their health insurance because they know that the added compensation won't increase at the rate of the premiums. So if there are going to be less people in employer group risk pools, what do you think that will do to premiums?

 

What I'm saying is that I'm not opposed to raising the minimum wage, what I'm saying is that there needs to be honest studies on small business and see what impacts t could have. If it shutters or causes less employment in these small businesses then obviously that's not the route to go.