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Lower the Supply But Charge Less? Who Thought That Up?


Remember that email that went around a few years ago citing frightening statistics on the character of individual members of Congress? It listed convictions for fraud, writing bad checks, bankruptcies, bad credit, drug-related charges, shoplifting, drunk driving, and spouse abuse. While specific individuals were not mentioned and that congress is long over, there is no argument that many in the current ruling class are pretty classless. No wonder their approval rating is down to 11%, half that of President Bush.

I mention this as a backdrop to the embarrassing circus we observed recently as a panel of congressional members grilled big oil executives. The energy producers, the people who provide the fuel for the country’s economic engine, were treated no better than FBI perp walkers, minus the handcuffs. They were accused of everything short of child molestation. But to see these elected ingrates on the panel pointing spindly fingers at these business tycoons was hard to watch. Especially embarrassing was the always entertaining Maxine Waters threatening to nationalize the oil industry if they did not lower the price of gasoline. Ms. Waters appeared to have forgotten that it is her party that has for several decades blocked drilling and new refineries in this country. As demand steadily rises, supply remains the same or decreases as a direct consequence of her actions. What did Ms. Waters think would happen to prices?

So, let’s say Ms. Waters and her Marxist cronies really do take over the oil business. I am curious what their plan might be once we have state run gas stations. When can I expect to get my $1.89 a gallon gas at Maxine & Barack’s Filler-Up Quick Mart? Will Ms. Waters also nationalize the milk duds and beer? They are too expensive, too, you know? And how, exactly is the government going to get cheaper gasoline for me? Or am I going to pay $10 a gallon so the “underprivileged” can get free gas stamps?

I have a better idea. How about, instead, allowing an increase in domestic supply, lowering the federal gas tax, and lobbying the states to lower their gas taxes? In California the federal and state gasoline taxes are 61 cents per gallon and rising. All the government has to do is sit back and count the money as it rolls in. It rivals the percentage OPEC makes on crude. They are the ones cleaning up here. The oil companies make 8 to 10 cents profit on every dollar it collects. They, on the other hand, must explore for new oil fields, come up with dry wells and successes alike, produce the oil, transport it, refine it, sell it to retailers, and pay back investors (you and me) into their 401(k) stock plans. Who is the gouger here, Ms. Waters? Maybe we need to nationalize the congress? Maybe you and your ideology need to leave congress so someone who is really looking out for the people can serve instead.

We the people must send a loud and repetitious message to congress . . . unloose the engine of freedom and prosperity. Ms. Waters should get out of the way and let the people do what they do best. And, unless she has credible evidence that the oil guys are doing something illegal, and last I heard making money for stockholders, reinvestment, and their paychecks is still legal in this country, leave them alone so they can get on with their business.

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