Rush Holt: Drilling Dysfunction? How About Meaning Dysfunction?

Recently I received a bulk email from my congressman, Rush Holt (D – New Jersey – 12). Mr. Holt sends these out occasionally as a way of keeping his constituents up-to-date on his job performance. Reporting on what a good job he is doing is very important to him. It’s so important to him that he also does this in-person. Once I went to one of his town hall meetings. The meeting was scheduled for only an hour and one-half. He arrived 15 minutes late and then announced that he would field questions because he was very concerned with his constituents opinions. But, before doing so he spent forty-five minutes giving us a report on what he was doing for us in Congress. He did not extend the duration of the meeting.

Perhaps I don’t need to say this, but I will anyway. The Q&A period was fairly short.

Maybe that’s the way he prefers his constituent meetings?

U.S. Representative Rush Holt

Don’t get me wrong. Members of Congress reporting on their performance is important. Of course, their report is only their own word, and I suppose we must believe them. But when Mr. Holt sends me emails like the one I mentioned above, I must doubt the veracity of anything he says. Here is why.

These are the first three paragraphs of Mr. Holt’s email message:

Together with Ranking Democrat Ed Markey and the staff of the House Committee on Natural Resources, I have worked for more than a year to gather and analyze data about safety and environmental violations committed by oil and gas companies.  Our report, “Drilling Dysfunction: How the Failure to Oversee Drilling on Public Lands Endangers Health and the Environment,” has just been released, and its findings are alarming.

The report finds that from 1998 to 2011, more than two thousand violations were handed out by the U.S. Department of Interior to oil and gas companies drilling on taxpayer-owned lands. More than 500 of these violations were classified as “major” by committee staff, including 293 violations related to non-functional blowout preventers and 113 citations for deficiencies in casing and cementing programs.

Yet the enforcement of safety rules was erratic and inconsistent, and all told, the Interior Department collected only $273,875 in fines.  That’s roughly equal to a single minute’s worth of oil company profits – the equivalent of levying a 10-cent fine against someone who earns $50,000 a year.

If these assertions are actually true, then Mr. Holt make some good points. But if you’re regular reader of this blog, you know that I like to dig deeper into the real meaning of the words that are put before our eyes. And it’s the results of that deeper digging that influences our judgement of what is or is not true.

The first paragraph is misleading.

In the first paragraph Mr. Holt states that he, Mr. Markey, and “the staff of the House Committee on Natural Resources” just released the report, “Drilling Dysfunction . . . ” When the words

Continue reading Rush Holt: Drilling Dysfunction? How About Meaning Dysfunction?

Obama Dumps on Free Market . . . Again.

This entry is part 1 of 1 in the series Capitalism Takes It On the Chin

President Obama dumped on the free market again last Friday. The free market progressively (pun intended) became a little less so with Friday’s presidential decision.

In response to Catholic agencies complaints against the Department of Health & Human Services health care regulations which required that those agencies supply health insurance coverage for birth control products and services for their employees, the Obama administration announced that it was shifting gears and no longer requiring those Catholic agencies to provide, and pay for, this type of coverage in their health insurance programs.

The delivery of another government-imposed burden on business.

Instead, President Obama announced today that he was requiring health insurance companies to provide the birth control products/services coverage free of charge. In other words, the health insurance companies must pay for birth control related products and services consumed by employees of Catholic agencies. By requiring health insurance companies to provide these products and services free of charge to employees of Catholic hospitals, universities, and other Catholic sponsored organizations, the White House has defused charges that its health care mandate was “prohibiting the free exercise” of religious beliefs by Catholic organizations, an American right granted in the First Amendment to the U.S. Constitution.

As of the time of this post, the reaction to Mr. Obama’s decision is mixed and undecided. A consensus may form within a few days. However, what is not undecided is the effect on capitalism.

The effect is not good.

There is a Constitutional amendment protecting the rights of individuals in the practice of their religion. But there is no amendment protecting the right of a business to offer products and services of its own choosing, and at a price that is mediated by market forces. And since there is no such amendment protecting the rights of business in this area, the president found it politically expedient to defuse the freedom of religion issue by shifting the responsibility for the provision of the products and services in question directly into the lap of health insurance companies.

Now of course, there are very few persons out there today weeping for this additional burden placed upon health insurance companies. There’s a meme out there that many people absolutely hate insurance companies, although not one health insurance company appeared on a recent list of the ten most hated companies in America. The question of that list’s accuracy not withstanding, the existence of this meme may be because there is a belief that health insurance companies are among the most wealthy companies on the face of the Earth.

This belief is false. As I’ve written on this blog previously, health insurance companies are not among the most profitable of companies around. Because of their low profitability, I would not hold stock in one even on a dare. And let’s not forget that many health insurance plans (e.g., some Blue Cross organizations and certain divisions of Kaiser Permanente) are not-for-profit

Continue reading Obama Dumps on Free Market . . . Again.

Congressional “Slimy-Capitalism” Coming to an End?

Imagine being one of a group of people that make the rules on what business can or cannot do. And then imagine being able to buy stocks just before those rules go into effect.

You don’t really have to imagine this scenario because it actually exists. Currently, there is no law that prohibits members of the U.S. Congress, the folks who know before the public does as to what rules are coming down the pike to affect business, from buying stocks based on the non-public and non-confidential information they acquire at work.

However, after this anti-free market Congressional exploitation was publicized in various news reports, the U.S. Congress is now in the process of embarrassingly producing legislation which would prohibit members of the federal government from profiting on the non-public information which they obtain through their jobs. The Stop Trading on Congressional Knowledge (STOCK) Act of 2011 was introduced recently in the U.S. Senate, with a similar bill introduced in the U.S. House of Representatives.

Yes. The politicians in Washington, DC, on either side of the aisle, are all for capitalism, or should I say perhaps “slimy-capitalism,” until it becomes a little too slimy to capitalize any further.

 

The New Capitalism Will Not Be Engineered

This entry is part 3 of 4 in the series Capitalism and the World Economic Forum

Extending from yesterday’s World Economic Forum commentary, conference founder Klaus Schwab does not appear to be a fast friend of the free market.

A new capitalism cannot be engineered. Because capitalism is a system devised from human nature, it especially cannot be engineered. It must evolve. However, some will try.

The World Economic Forum founder and chairman, Klaus Schwab, recently stated:

“Capitalism, in its current form, no longer fits the world around us. We have failed to learn the lessons from the financial crisis of 2009. A global transformation is urgently needed . . .”

Mr. Schwab also said:

“We are looking desperately around the world for people who can offer solutions. We are in danger of losing the confidence of future generations.”

(Just a technicality perhaps, but yet one about which Mr. Schwab should know. The financial crisis began in 2008, not 2009.)

His remarks, though probably well-intentioned, smack of the desire for the centralized planning of an economic system. We know from history what happens when governments, especially those seeking global influence, endeavor to control economies.

Capitalism springs from the natural behavior of human beings. To engineer around that simply flirts with disaster.

No, Mr. Schwab. The best solution is to get global planning authorities out of the equation, and with the input of their constituents let nations and states figure out what’s best for their own people.

It’s About Capitalism. Period.

Yesterday, I had a guest post appear on The Daily Capitalist.

Click here to read “It’s Not About Canadianism; It’s About Capitalism.”

And thanks to Jeff at The Daily Capitalist for posting.

U.S. Democrats Want “Reasonable Profits Board”

Yes. You read that headline correctly. Democrats in the U.S. House of Representatives want to set up a “Reasonable Profits Board” to control the amount of profit made by oil and gas companies.

The Gas Prices Spike Act, HR 3784, provides for taxes of between 50 and 100 percent on profits over an amount considered to be “reasonable.” How is “reasonable” to be determined? The bill states that “reasonable” will be defined by a three member, president-appointed panel which will compose the board.

Dangerous? Almost certainly. Just imagine what this law would do to oil and gas prices and supply, not to mention its effects on U.S. dependency on foreign oil.

Anti-capitalistic? Absolutely. In fact, socialistic is a more accurate characterization.

Read more about this bill in “Dems Propose ‘Reasonable Profits Board’ to Regulate Oil Company Profits” at TheHill.com.

 

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