"There is no problem that is not so bad that it cannot be made worse by Congress fixing it."
--REBierce
The heads of U.S. oil companies completed the second stage of their Congressional Big-Oil-Bash-Athon yesterday by answering questions from largely-economically illiterate congressmen--and women.
Congress took time out from pandering in person to pander in front of the TV cameras. The big winner of the "Comrade Stalin" award was Maxine Waters, who threatened to nationalize (seize) the oil company's assets.
Apparently, Waters is committed to bring the same brand of efficiency to the oil companies that government has demonstrated at the Post Office and Social Security.
Link: sevenload.com
Rep. Waters seemed a bit confused on what she was calling for--"socialization" was on the tip of her tongue--and it was guessed that she was wanting Big Oil to "work and play well with others".
The congresswoman declined to elaborate immediately afterwards--no doubt until she received further talking points from Hugo Chavez.
Of course, the Congresswoman is one of the reasons that oil supply is restricted: she's voted against opening up U.S. oil fields in Alaska. But, being a member of Congress, she's used to changing laws.
Waters will find that The Laws of Supply and Demand will continue to defy her best efforts. However, Waters is a gamer and one is assured that she will continue in her quest, no matter the facts.
Any number of rulers throughout history have drug their countries down the broken path of price controls: Rome, Russia, France, Great Britain, the United States are the examples that come to mind. All of them got a lesson in economics; when you control prices, there are less people willing to sell less of something for less money. Scarcity is the result. The next step is to criminalize those people who are not willing to give away their products for less. "Hoarding" is the charge that's most often heard.
Allahpundit was right on the money on this one: "Befitting the catastrophic stupidity of this idea, she doesn’t even know what the proper term for it is."
For those with the slightest historical recall, Congress has been here before: in the 1970s oil and gasoline prices were controlled by a government hellbent on demonstrating that There is Such a Thing as a Free Lunch.
Sadly, the inelastic laws of Supply and Demand trumped the U.S. government's best efforts then: "Windfall Profits Tax" and "price controls" soon meant that gas stations were open a couple days a week--and when they were open, motorists waited hours in line for privilege of filling up.
When Ronald Reagan was elected, gasoline prices in 1980 were in the $1.50 per gallon range. One of his first acts was to decontrol the oil prices. Pundits and Democrats screamed that gasoline would soon hit $2/gallon.
The Democrats in Congress were just as economically savvy in 1980 as they are 28 years later: within weeks, gasoline prices dropped to 60 to 70 cents/gallon and there were no more supply problems. Chalk one up for the philosophy of "government is the problem, not the solution".
9/11 changed that a bit for some people. The struggles of the Homeland Security leviathan to do anything effectively--other than spend tax money--should have reminded people of the abilities of government control.
It has taken 28 years for Democrats to figure the American people had forgotten that 1970s episode of Congress "fixing" gas prices.
By calling for the nationalization of U.S. oil companies, Maxine Waters is betting on the "amnesia" of the American people.
by Mondoreb
hat tip: AllahPundit @HotAir
images: polizeros
Source: Video: Maxine Waters threatens to nationalize America’s oil industry
On April Fool's Day, it was the fools who ruled the court--or rather, the House.
The House Select Committee on Energy Independence and Global Warming held hearings and grilled oil company execs over the oil companies' 8-cent per gallon profits.
They remained close-lipped over government's take of nearly 50-cents of taxes per gallon. Or, as the Wall Street Journal notes that "higher gasoline prices is exactly what would happen if Congress enacts proposed global warming policies".
San Diego California IRS representation specializing in accounting and auditing needs.
Three of the House's Select April Fools.
"On April Fool's Day, the biggest joke of all is being played on American families by Big Oil."
Edward Markey (D-Mass)
Chairman of the Select Committee on Energy Independence and Global Warming
Fierce opponent of drilling for oil in ANWAR. Insists it won't make any difference in oil prices.
Rep. Markey opposes the most significant thing he could do help oil prices drop: increase supply. He has also steadfastly refused to sign the National Taxpayers Protection Pledge.
On April Fool's Day, the biggest joke is Edward Markey pretending that he cares about American families--especially after Markey's Democrat-controlled House has just proposed a budget that will increase taxes on the average American family of over $3000.
It's not a joke many families will find funny.
"This whole situation has been nothing more than manipulation around greed."
John Larson, D-Conn
Larson currently serves on the powerful House Ways and Means Committee, the House committee charged with writing tax legislation and bills affecting Social Security, Medicare, and other entitlement programs.
Speaking of manipulation around greed, Rep. Larson's Ways and Means Committee was responsible for tax changes in the proposed House budge which equaled an additional $3120 in taxes per family, according to Larson's colleague, Rep. Eric Cantor.
Larson's had no comment on whether the House will hold hearings on this matter of greed. Of course, Larson's campaign is flush with almost $5 million--none from oil companies.
"With your record high profits, have you thought about lowering your prices?"
Greg Walden (R-OR)
Walden was the only one of Oregon's House members to vote against a "fix-up patch" on a bill to protect the middle class from a new tax.
With federal government's record budget of $3.1 TRILLION for 2008, will Rep. Walden agitate for lower tax rates? What about Walden's earmarks of over $46 million? Will he think about lowering his earmarks, in light of the federal government's record profits?
As Ronald Bailey of Reason writes: "Finally, if Congress wants to blame someone for high oil prices, blame the benighted oil producing countries that have underinvested in oil production for at least a decade. But Congressional grandstanders can't haul the likes of Venezuela's Chavez, Russia's Putin, and Iran's Ahmadinejad to their hearing rooms."
The spectacle of the House blaming the oil companies in a free market for high prices would be bizarre, if it didn't happen so often.
On April Fool's Day, three of the biggest jokers are pictured above.
by Mondoreb
images: wikipedia; backbonecampaign
Sources:
* Big Taxing Big Earmarking Big Congress Grills Big Oil
* Greg Walden's Wampum
* Congress asks Big Oil to justify Big profits
* Federal budgets
* Ed Markey
* US House again votes to drill in Arctic refuge
* Don't Blame Big Oil for High Prices
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