Theodore's World

subsidy
noun (plural: subsidies)

-defined as a grant of a sum of money by government to an industry or business so that the price of a commodity or service may remain low or competitive, or a sum of money granted to support an arts organization or other undertaking held to be in the public interest.

For example: a farm subsidy or a grant to the Smithsonian.

There are no oil subsidies. The government doesn't grant any money to oil and gas companies. This is a farce.

This is what we talk about when we talk about the perversion of language.

Like other manufacturers, oil and gas companies, in their accounting of reported income and expenses, deduct depreciation of capital deployed in tools and equipment, and deduct the losses incurred in dry wells.

If oil and gas companies are no longer allowed to claim these deductions and losses as proposed in Title IV of this latest $447 billion American Jobs Act stimulus program, it would revamp the entire business model for an industry that relies on huge sums of private capital and high risk taking.

It doesn't take much to understand that most of the real work in this industry's done by small drillers. With their private investors they deploy private risk capital and their private resources in a collaborative effort that sometimes turns out dry wells.

If these investors are not allowed to claim these losses, private capital for smaller oil and gas companies would dry up and there'd be a severe loss of good paying jobs in this industry.

Only the larger companies like Exxon and BP with enormous resources could afford to take these high risks and survive as viable concerns.

This is yet another example of central planners taking and destroying viable and sustaining jobs in a productive industry within the results oriented private sector, to then fund another creation of the government's own making with temporary make work jobs that are neither sustaining nor viable. Green jobs they call them to make them feel good and satisfy their environmentalist creed.

Just like the half billion dollar boondoggle of California solar panel manufacturer Solyndra now bankrupt that was part of last year's $825 billion stimulus program.

They are clueless as to job creation, real wealth creation, alien to risk taking, excuse their failures as well intentioned, and are always quick to plan yet another publicly funded program with reckless risk free non recourse spending.

Why do they fail ? Because results oriented risk taking must remain in the private sector to ensure sustaining and viable employment. It's that simple.

So, we have an American Jobs Act from an administration that continues to destroy good paying American jobs in vital energy production, we become even more dependent on foreign sources of oil and gas, and ensure continued higher prices for retail end consumers.

Brilliance.

Explained to a class of sixth graders, they'd readily understand what I write here.

These are adults with Ivy League educations in Washington that govern us with their economic theories and social engineering crap. They have caused enough damage with their horrendous fiscal legacy and collectivist deceit.

Their creed of environmentalism and equality trumps everything.

They are central planners. They are communists. They must be defeated.

Collectivism holds that man has no rights; that his work, his body and his personality belong to the group; that the group can do with him as it pleases, for the sake for whatever it decides is best for its own welfare. Therefore, each man exist by the permission of the group, state or government.

By taxing a free society to the point of confiscating his wealth, whatever that amounts to, the government is no longer governing by the rule of law but by the rule of a few.

Well said Carlos and Mark.

..as usual I am shocked but not surprised. The cost of the "American Jobs Act" will far exceed projections and create few if any jobs. The tax increases will further depress the economy by abusing the most productive sectors so revenue will fall short of projections-far short, leading to calls for more "revenue". Many will make sure that they fall short of the $1,000,000 mark to avoid the surtax. But at least those fat-cat corporate jet owners will get theirs with the $100 per flight fee. As *THE*RULER* said during the 2008 campaign in regard to capital gains taxes, "fairness" is what matters,even if revenues are reduced. All hail Obamugabe !!!

Marxism in action folks. This is serious. History has not shown us many examples of Congress and/or presidents repealing any govt. programs, departments or laws once in effect. We will need lots of repealing once obama is gone.

Buy that ammo!

What great sharing and input thank you all so much.