As goes Big Oil, so goes our Country…

Sensational title? Maybe. But maybe not if you believe, as I do, that this country was founded on the nobility and ingenuity of man, and that those qualities should be neither controlled or impeded by their government. So what to make of the recent Congressional hearings where Big Oil is on trial for what is essentially success? Are these people who run oil corporations greedy? Evil people who are part of a faceless giant who only gains pleasure from bleeding our wallets dry? This seems to be the popular belief, if you accept what you are hearing on the news, or even the words of members of Congress itself.

From the article: “Dianne Feinstein, a California Democrat, who said: “You rack up record profits, quarter after quarter after quarter, and apparently have no ethical compass about the price of gasoline and think you are victims.””

Maybe this resonates with you. After all, with all the talk of economic problems, and the obviously high costs of most basic necessities (mostly because of gas prices), the idea that someone might make a few million just seems wrong, doesn’t it? But what if that person making the million was a friend? Brother? You? Would it still seem as wrong? There is a moral relativity to these sorts of things that really manifests when the “them” is furthest detached from the “us”.

Even if you insist this is still a clear case of “evil corporate greed”, I submit to you the following article that just appeared on my screen today. I have heard this information before, back when gas topped $3 and the world was going to end, so this is not new information, but I am glad to see it surfacing again. I’m guessing it would come as quite a shock to Mrs. Feinstein, who apparently is either unaware of the reality of the situation or is just simply pandering for votes. I want to thank John Porretto and John Wilen of Associated Press for writing such a beautiful factual piece that is devoid of angst or hyperbole. Pulitzers should be awarded for articles this informative and timely, but they probably won’t.

With apologies, my summary: Oil companies DO NOT CONTROL OR EVEN LARGELY INFLUENCE THE PRICE OF GAS. Shocked? Read the article. What of their massive profits then? Remember the price of a barrel of oil that keeps going up and up? Turns out that they are one of the beneficiaries of the speculation that drives that price. In other words, they are procuring and selling a product at prices DETERMINED BY the first group of people who are in demand of it (hint, it’s not us; it’s not even gas yet). This doesn’t even begin to tell the entire wonderful story of the Capitalism at work on this. Read the article. No really, go read it, I’ll wait.

Unfortunately the story is complicated and there may lie the issue. It’s a lot simpler to blame the “greedy corporations”. Perhaps Mrs. Feinstein is simply incapable of comprehending the complexities involved. Or, again, maybe she really is just pandering for votes. Don’t get me wrong, I’m sure she feels our pain. I have no doubt the person who drives her limo has been overheard discussing how much it takes to fill up the ol’ stretch. Or maybe her chief-of-staff has been lobbying for another Congressional raise to help offset those fuel costs.

Economics: The excess money that the oil companies make will be spent on things that oil companies need. Even the executives who make exhorbitent salaries need to buy things. Perhaps you supply one of these things? At the very least, these “evil corporations” employ thousands or tens of thousands who are quite content, I would guess, to be the beneficiary of the oil companies’ gains. And the money these regular joes make WILL go into everyone’s pocket as they buy food, clothes, and even gas for themselves. Wealth is redistributed. Tada! Windfall profits redistribution at work, without actually taxing someone for their success.

Lets imagine for a moment the opposite scenario; that Congress manages to create such a punishment successfully. Now the oil companies are short on cash, and unexpected expenses begin to creep in on them as this assumed “recession” takes hold. Guess who is spending less money on things they need? Guess who is laying off employees to keep the balance sheets going the right way? Companies that don’t make money won’t stay in that business for very long.

The history of economics is clear; give someone more money and they will be comfortable spending what they have. Take away their money and they will hoard it, fearful of running out. Our Founding Fathers understood this all too well as students of free economic thought and watched as British government profited from their efforts while keeping little of it in the colonies themselves. People with means empowered themselves, educated themselves, and bettered their locality. Governments could take away these means to better control the people. This is why the economic philosophers of this time believed in free enterprise and why our Founding Father’s established a government who’s design, it was hoped, would enable and protect it.

Why then would our Congress today want to publicly humiliate the people who practice this free enterprise successfully? Worse yet, enact legislation whose implicit message to all who practice is that they are Free to do so, just as long as they don’t do it too well?

Oh yeah. That pandering thing again.

““Thank you for being here today,” Ms. Waters told the executives. “If you feel a little bit beaten up on, we all feel beaten up on, so just share the pain. We get our behinds kicked every day in our districts about what is going on.””

Next time you see an oil executive, give them a hug. I’m sure they could use one.

Better yet, write your Congressperson and tell them that instead of punishing Free Enterprise, perhaps they should be finding ways to help our own American companies to better compete and provide in the marketplace.

“All the perplexities, confusion and distress in America arise not from defects in their
Constitution or Confederation, nor from want of honor or virtue, so much as
downright ignorance of the nature of coin, credit and circulation.”
– John Adams

Legistorm.com schools Congress on democracy in the Information Age

A site called Legistorm.com is causing concern among congressional staffers because of their posting of what is otherwise public access information about their finances.  Well it’s called transparency, and in a government that works for the people, it’s a good thing.  Publicly disclosing the money trail helps ensure the trail stays clean.  Sure, there are concerns about identity theft issues, but reason suggests that there is always the private sector if the kitchen’s too hot.

People in Public service–a group that also includes those who merely work for Public Servants–should understand that it’s their Duty to their Country to have their cavities searched for illicit activity.  Our government wasn’t set up with the notion of just trusting it.  While they’re at it, they should all be required to be aboard The Punch Clock campaign.

“I hope I shall always possess firmness and virtue enough to maintain what I consider the most enviable of all titles, the character of an honest man.”
— George Washinton

Change Congress movement

http://change-congress.org/

This is a worthwhile cause and a good start to taking back the government of the people, by the people, for the people.  The Change Congress movement was started to try to collect like-minded people and candidates around a 4 step platform for change:

1. Not taking money from lobbyists or PACs to end their influence
2. Ending earmarks to prevent our tax money from funding things we never asked for
3. Public financing of campaigns to replace the money that special interests are not longer using to influence (as little as $6 per citizen per year)
4. Adding more transparency to Congress.  Details of meetings, who was there, what was discussed, etc.

There are plenty of other reforms that need to be taken, but any step is always important because it imparts inertia.

Career politicians beholden to the wealthy is not what our Founding Fathers had in mind.

Governments are instituted among men, deriving their just powers from the consent of the governed.
-Declaration of Independence, July 4, 1776