What does it profit a man to have no profits?

John Stossel:

At a recent press conference Sen. John Kerry was upset as he snarled, "Oil companies in America are reporting record profits. Record profits."

When did profit become a dirty word?"

I wish the oil executives would face the media. They could say something like:

"What are you complaining about? What do you think we do with our profits? Buy fancy cars and homes? Well, we do, actually, but nearly all the money goes to looking for more oil and following environmental rules that you want us to follow. You should want us to make more profit. Anyway, we make less profit per gallon than your beloved government takes in taxes."

But Big Oil never shouts back at the reporters. I guess I can't blame them, given the hostility of the economically ignorant media.

This month the media claimed that gasoline prices had reached a "new record."

"Filling up is more expensive now than it's ever been." That's Julie Chen of CBS.

"A record high." -- Brian Williams, NBC

"Another record high." -- Charlie Gibson, ABC

" ... [R]ecord high of, get this: [ka-ching] $3.18 a gallon." -- Jon Scott, Fox

No, Jon, get this: It's not a record high. It only looks that way if you don't adjust for inflation. And that's just silly. It's like saying the movie "Rush Hour II" out-earned "Gone with the Wind." The media should quote prices in real dollars, but when they get excited, they don't. As the U.S. Energy Information Agency (EIA) acknowledges, once you adjust for inflation, it turns out that gasoline cost more 25 years ago, in 1981. When the 1981 price is converted to 2007 prices (not 2006 prices, as originally used at the EIA website), last week's average price of $3.22 was seven cents below the record, $3.29, which, by the way, was a monthly average.

...

Trial lawyers in product liability cases like to argue that manufactures put profit ahead of protecting their client. Since I was never involved in such a case, I never got the chance to refute this argument, but I think the jury should be made to understand that profits are not a violation of the law. In fact none of them would have a job if companies did not make profits. Car companies in this country are now feeling the effects of not making a profit and unless they turn that around they will not be making products and people they employee will be out of work. No, profits are not so bad.

BTW, has anyone in Congress ever complained about excessive losses? It might surprise you to know that they have, when it comes to deductions from income. You see, they don't want to have their profits from taxes cut too much. Can you say alternative minimum tax?