Oil Company Reports Best Profits Ever, More Americans Fall Into Poverty

Several news tidbits stuck with me from last week. The Department of Labor reported a net loss of 17,000 jobs for the last month, a marked change in the direction of that indicator that has been trending up for the past four years or so. That fact, plus the sub-prime mortgage and housing market crisis, indicates the U. S. economy is really slowing.

The U.S. and most foreign stock markets reflect the same reality. Tough news for low-income families who likely will be joined nearer the bottom of our economy by a crowd of previously middle-income families.

In the past month, I've had several conversations with people who have either lost their homes or fear they may. I fear we will begin to see even more growth in the numbers of Americans who fall into poverty.

ExxonMobil reported historic, all-time record earnings for an American corporation in the last quarter.

The data point that sticks with me: the company, ExxonMobil, earned $1,300 per second in the reporting period.

Exxon Mobil Corp. shattered its own record as the world's most profitable publicly traded corporation, as rising oil prices helped the company bring in better-than-ever income and revenue for the fourth quarter and 2007.
Irving, Texas-based Exxon's net income rose 3% to $40.6 billion in 2007, surpassing its 2006 record of $39.5 billion.

Chevron Corp. also posted strong earnings despite lower production and lagging profit from making and selling gasoline. Full-year profit at the San Ramon, Calif.-based oil company jumped 9% to $18.7 billion.

That was happy news for company shareholders, but bad news on the public relations front. The robust results, booked amid high gasoline prices and a wobbling U.S. economy, irritated consumer groups and politicians, reigniting calls to eliminate oil industry subsidies.

"Congratulations to Exxon Mobil and Chevron -- for reminding Americans why they cringe every time they pull into a gas station and for reminding Washington why it needs to act swiftly to break our dependence on foreign oil and rollback unnecessary tax incentives for oil companies," Sen. Charles E. Schumer (D-N.Y.) said in a statement.

Exxon's and Chevron's big profits "come at the cost of an economy tipping into recession," said Judy Dugan, research director for the Foundation for Taxpayer and Consumer Rights in Santa Monica. "While Exxon makes the largest corporate profit by any corporation ever, families pay $60 and more for a gas station fill-up." (Exxon and Chevron both see profits soar, LA Times)