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Tami_Hughes' Blog

by Tami_Hughes from FOX 6 Milwaukee

Last Post 11 minutes Ago


Am I the only one confused about what's going on in our economy right now?  I'm sure it's part of the global economy, but I'm really, truly perplexed about something.

I covered the story of Midwest Airlines' job cuts on Monday... 1,200 people are going to lose their jobs.  The company says mostly to blame, is fuel prices.  Mike Brophy, an airline spokesperson said, "It's a very, very tough environment for airlines, probably the most difficult ever.  Definitely more difficult than post 9-11."  That's an exact quote.  And it's not just Midwest, as I'm sure you know, airlines everywhere are suffering-- cutting jobs, charging customers more, etc.

So my confusion is... How in the world is this happening, while oil companies claim record profits?  I don't understand this.  How is this possible?  Are oil companies more valuable than the airline industry?  Are their profits worth more than food prices at the grocery store or families being forced to sell a vehicle just to get by?  I just don't get it.  Really, I'm not trying to make a political statement because I'm not trying to blame anyone with this blog-- I truly don't get it.

So-- if you can offer any explanations to end my confusion, I'd love to hear it.
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Member Comments Total Comments: 15
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Only1Antoine read my blog
Jul 14, 2008 | 9:59 PM

And to think, I was just had an interview with them on June 4TH and this month on the 21ST of July I would've had training with them for 3 weeks to see if I can pass it and have a new job.

I didn't even take the Drug Test and they haven't even called me to come out there and pick up the papers for me to take the Drug Test and wait a week or 2 to call me and say be here at such and such time so we can get started.

I was really looking forward to getting off into something different, but now that 1200 people are about to lose their jobs from many or all positions of Midwest Airlines including 200 more from Flight Attendants and Captain and Co-Captain Pilots, you might as well say "there will be no new job for me" and I applied for the Ramp Agent Positions.

You know the bad thing about all of this though? It makes no sense that all of the people who went through the whole interview process and orientation sessions/training that was looking forward to something different (like myself and various amount of others) all have to suffer along with them and we didn't get hired with them yet.

I feel like for me, that was just a bust and a waste both at the same time and now I have to start over somewhere else. If anyone just doesn't get it, IT'S ME.

Only1Antoine read my blog
Jul 14, 2008 | 9:59 PM

(I AM MAKING PLENTY OF WORD ADDINGS AND TYPOS. SORRY)

jdsmke read my blog view my photos
Jul 14, 2008 | 11:08 PM

There are two things to consider about Oil Company profits. We keep focusing on their "record profits", but one thing we NEVER hear about is the profit rate. It leaves us with the impression that the increase in profits is causing the increase in prices.

In reality, an oil company's profit rate is about 10%. The record profits are caused by the record prices. The record prices are being caused by record demand, coupled with the low value of the U.S. dollar.

One of the quickest ways to reverse the trend of rising oil prices WITHOUT DRILLING FOR MORE OIL is to reverse the soft dollar policies that have been embraced by every president of the last 20 years (starting with George H.W. Bush). However, reversing the soft dollar policies and increasing the value of the dollar would cause inflation, and the low prices which drove our consumer markets for the past 20 years. This is called "demand side" economic stimulus, and it has created the economic problems we are experiencing now.

By the way, the economic stimulus checks we just got are all part of the same failed demand side economics. It didn't solve anything, just extended the positive, unsustainable growth for a little time. That is why the economy had a brief blip when they happened, then went right back to sliding.

Sadly, most of our economists now embrace demand side (Keynesian) economics. There are precious few economists who are willing to stand up and offer real solutions.

jgravelle read my blog view my photos
Jul 15, 2008 | 10:30 AM

Imagine you owned a farm in Tami-ville.

Running at about 80% capacity, you are able to feed the town's 100 residents every year, and turn a tidy little profit.

Amore runs rampant in Tami-ville, and soon the little burg swells to a population of 200. You push your capacity up to 100 percent... even 120 percent with some ingenuity, yet many villagers are now going hungry, even though your profits are up 50%.

The government won't let you expand your farm, but they DO set their sights on your "obscene" profits because you, Ms. Hughes, are evil and capitalistic.

You are "Big Food".

==================

Our supply of oil is artificially limited by restrictions on drilling and refining. Yet China and other nations are growing and increasing the demand on the world's supply exponentially.

Oil company profits rise because they're doing more business. But they can't satisfy the market because of governmental restrictions, so the supply can't meet the demand.

When that happens, prices take off, but planes don't...


-jjg
DailyScoff.com

stephen1276 read my blog view my photos
Jul 15, 2008 | 3:21 PM

Tami, like you, I'm confused with the oil and job slashing thing. For Midwest cutting back on 1,200 jobs is sad. I have 2 cousins on both sides of my family that work for the company, and I don't know if their jobs as flight attendtants would be effected. I can't figure it out with the gas prices. Speaking of jobs, I too was looking forward to try out a new profession, but never was called for a interview. UPS, in Elm Grove had a job advertised for Industrial Engineering Management Trainee back in February. And the reason why I picked that job the most because it would match up with my B.S. Degree from UW-Stout. I was looking forward to it.

I kept calling and calling to see if there was any interviews coming up. None happened because according to them, the job was cancelled or put on hold. That bothers me. If the advertisement on any job is available, it should be available. Keep in mind, this was between February and April. Now it's back up. And someone who would probably are thinking of applying, would go back and call UPS or email the company to see if the job is still available. UPSjobs.com does have it advertised as of current openings, but in reality is not available from a management standpoint. What's next? Look somewhere else. That's all you can do.

aaro-nf read my blog view my photos
Jul 15, 2008 | 4:15 PM

sorry i cannot answer the question of why this is happening to companies who report record profits. great job on the posting of this blog.

itsmerich read my blog view my photos
Jul 15, 2008 | 4:25 PM

Great analogy JJG!!! If that doesn't explain it for people that don't understand than I don't know what will.

Tami, your falling into the rut that most are in this country..and that is thinking with your emotions. Stick to looking into both sides logically and find your answers there.

Tami_Hughes read my blog
Jul 15, 2008 | 11:02 PM

I hear what you're saying, jgravelle... honestly, you're little analogy made some sense. But what is still confusing is THIS thought... As with the big demand in oil, obviously there's a big demand in energy, period. But you don't see WE ENERGIES making RECORD profits off all of us running our computers, tv's, ovens, etc. Do you see the confusion? Honestly, it troubles me. I feel like I'm being misled and lied to, I'm just not sure by whom.

stephen1276 read my blog view my photos
Jul 16, 2008 | 1:17 AM

In the concern of the way the economy is right now, it may harm festivals also. If you didn't know, I just got word from Channel 12's website and their news report that African World Festival has been scrapped this year. Ouch!

hahnmeister read my blog
Jul 16, 2008 | 2:34 AM

The oil industry is a monopoly in many ways... oil in itself could be seen as a good without a substitute (for now), and with a very elastic demand because of it. At the very least, it is a very strong oligopoly.

The problem with it is that unlike other monopolies, we cant break this one up like microsoft... the US government gave OPEC immunity a long time ago, so we are pretty much at their mercy. Its not about the speculators (the speculators are responding to the projected supply and demand... so its either now or later, and they might as well make money doing it). We cant turn our backs on oil either because what else are we going to do? Run on coffee? We have let oil companies present us with the only nipple which we can suck on, while they have blocked out most every other alternative out there.

The reason you dont see WE jacking up prices is because they are not a monopoly/oligopoly that is immune to anti-trust laws and regulations like OPEC, and if they did similar things, the government would step in and finally declare them to be a monopoly (which they are, but they havent tried anything yet so were letting them slip by for now).

itsmerich read my blog view my photos
Jul 16, 2008 | 2:56 PM

I think WE Energies isn't making record profits because they produce the energy themselves and the demand hasn't gone up as fast as the demand for petroleum, it seems everyday something new is produced using petro. Keep in mind, the oil companies profit margin hasn't gone through the roof. It has stayed pretty much the same.

catholicgirl55 read my blog
Jul 16, 2008 | 3:26 PM

My head is spinning too. All I can say is, WE'RE LIVING IN THE TWILIGHT ZONE.

desertwindrider read my blog view my photos
Jul 18, 2008 | 11:30 AM

What are the possibilities that the terrorists have finally gotten us where they want us??

bassplayer92 read my blog
Jul 19, 2008 | 8:15 AM

It has been my understanding that the profits of "big oil" are dwarfed by the "profits" of the federal government. I believe they are around 3x's the profit of the oil companies. Now, if your talking that kind of money why would our current government drill and lower prices. Democrats own our government now, dems love government control and power, money equals power. Not as good as gravell's analogy, but it is what I see going on. Our government needs to start caring about our people's needs and not their own pork filled spending accounts.

desertwindrider read my blog view my photos
Jul 19, 2008 | 2:15 PM

bassplayer, it's not fun caring about other people's needs.

I NEED A NEW COMPUTER!! I NEED ANOTHER MERCEDES SUV!! I NEED A VACATION....although i just took one last month...I NEED A NEW DESIGNED SUIT!! I NEED A NEW SWIMMING POOL!! I NEED TO RE-LANDSCAPE!! I NEED!!! I NEED!! I NEED!!

(now wasn't that more fun?)

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Tami_Hughes

FOX 6 Anchor/Reporter Hey all you bloggers! Here are some things that I think sum me up... coffee, kids, Van Morrison, cinnamon, Food Network, exercise, wine, Miami Hurricanes, naps, four-legged critters, and wifey. (In no particular order-sorry hubby!)

Member Since: 8/24/2006