Exxon Is The Government’s New Whipping Boy!

I’ve been trying to find out whether we’re going to see an increase in interest rates over the next few years. It’ll depend on whether we have inflation and go into a recession or not. While reading on this topic, I’ve read a lot of interesting stuff.
Here’s something interesting from http://www.financialsense.com/stormwatch/2005/1028.html

Is Fair Share Fair?
On the day this was written ExxonMobil, ConocoPhillips and Microsoft all reported third quarter profits. Exxon Mobil reported sales of $100 billion and profits of $9.9 billion. ConocoPhillips reported sales of $49.7 billion and profits of $3.8 billion. Microsoft reported that sales rose to $9.7 billion and profits rose to $3.14 billion. ExxonMobil earned a 9.9% return on sales; ConocoPhillips earned a net return on sales of 7.65%. Microsoft’s profits reflect a return of 32.2% on sales.
Company Sales (B) Profits (B) Return on Sales
ExxonMobil $100 $9.00 9.90%
ConocoPhillips $49.7 $3.80 7.65%
Microsoft $9.7 $3.14 32.2%The rise in ExxonMobil’s and ConocoPhillips’ profits promptly called for a windfall profits tax to be imposed on the oil companies. Microsoft’s profits of 32.2% on sales called for no similar action nor were there calls for windfall profits taxes on homebuilders, banks, and other technology companies who all reported higher profits on sales. The oil companies have become the government’s new whipping boy for government-created inflation. The object of course is distraction and shifting the blame.