"Putin's war is causing gas prices to rise, but this is no excuse for large oil companies to pad their bottom line with war-fueled profits," tweeted Sen. Elizabeth Warren (D–Mass.) along with an MSNBC video of her explaining her stance. "Senate Democrats are watching closely—and already working on a windfall profits tax." Warren also said that she gets "supply and demand—that prices go up" but that "profit margins should not go up, that's just oil companies gouging."
What she calls "gouging" is actually demand adjusting to supply. She also forgets that higher profit margins strongly incentivize entrepreneurs to supply more of a good to the market thus eventually driving down prices through competition.
