Oil company profits. Larger than the promises made in spam email, and more obscene.
Monday, August 4th, 2008
Just a little reminder, here. ExxonMobil is reporting that it made $11.68 billion in profits in just the second quarter of the year alone. Royal Dutch Shell was just a few million dollars behind. In case those numbers are hard to grasp, this is more than the annual GDP (adjusted for purchasing parity)* in 2007 for each of the worlds 54 poorest countries, according to World Bank calculations. Is is more than the combined annual GDP (adjusted) of the poorest 16 countries in the world. These 16 countries have a combined population of nearly 8 million people. In other words, ExxonMobil’s quarterly profits (profits, not revenue) are equivalent to more than $1,470 per person for the combined population of the world’s poorest 16 countries. What would $1,470 do for these people? What would it do for you? What will it do for George W. Bush, Dick Cheney, John McCain, and other supporters of welfare for the oil corporations? (There actually is an answer to that last question.)
P.S. How long before all this money trickles down? A lot of unemployed people would probably like to know (8.8 million, to be aproximately exact). Speaking of unemployment, don’t forget that the official rate ignores people who want a job but are not officially part of the “labor force,” because they haven’t looked for a job recently (for example, because they’ve concluded that there are no jobs available). Adding those 5.2 million additional people gives an unemployment rate of 9%. And if you also add in all the people who want full time work but can only find part time work, that’s another 5.7 million people being partly left out of the productive economy, for an overall un- and under-employment rate of 12.7%. Jeepers.
* Note: adjusting for “purchasing power parity” means taking into account the fact that in one country it will cost less, in dollars, to achieve the same standard of living as in another. For example, food might be much cheaper, on average, in one country than another. So even though the people in the first country might have a lower income in raw GDP terms, the usefulness of that GDP is higher, relative to the situation in the second, more expensive, country. So adjusting for PPP makes the comparisons more meaningful and realistic, though admittedly adjusting for PPP is not a precise science by any means. Also note that this adjustment usually will reduce the numerical disparity between poorer and richer countries (since the same living standard is generally less expensive to achieve in poorer countries—which is why ex-pats from Europe and America can so easily afford to hire maids, gardeners, and cooks when living in poor parts of the world, while someone back in the home country could never afford such luxuries on the same salary). In other words, if I had used non-adjusted numbers, the comparison between ExxonMobil and the poor countries of the world would have looked even more extreme.
[Here are my calculations: exxonprofit-vs-poor.xls ]

























