1984
Ted Rall's latest editorial (included at the end of this post) is the absolute gospel, no heresy intended. People don't want to hear what he has to say in this piece, but it's right and it takes a certain faith to accept something so seemingly foreign to "the American way" as nationalized energy. Americans equate nationalization with socialism, and this country has a very long history of doing it's very best to give socialism a bad name. The problem is, we already have a number of socialized institutions that we all take for granted.
Public schools, police and fire department are just three obvious ones. These are all services that we assume to be necessities, a right of the people. Why are energy and natural resources any different? It just makes sense for these things to be nationalized for the public good, not the good of corporations to profit from.
But wait, isn't the free-market and captialism the answer to everything? Can't we just trust that corporations will always act in our best interest?
Consider the case of water in Bolivia in 1999. A US company bid to take over their water system then raised prices drastically and even worked to make rain water a sellable commodity that they owned.
US seed makers genetically engineer seed so that farmers can't save any for next year. Monsanto is even trying to patent the pig. Couple all these things with the never-ended war against Eurasia, er I mean terrorism, and suddenly 1984 doesn't seem so far fetched.
Trust big corporations or the goverment? Not if my life depended on it.
THE CURE FOR HIGH GAS AND FOOD PRICES
Vital Businesses Need Nationalization
The
gas station attendant came outside. Wow, I thought, full serve!
Ignoring me, she flung a magnetic price decal on top of the price per
gallon. Regular unleaded had gone up 20 cents in the time it took me to
drive from the curb to the pump.
"You're kidding me," I moaned.
"It's 3 o'clock," she shrugged. "Just got the new price."
There has to be a better way, I thought.
And there is.
It isn't drilling in the Alaskan wilderness. It sure isn't John
McCain's plan to offer $300 million to the first person to come up with
a longer-lasting car battery.
Gas prices could hit $7 a gallon
before long, Wall Street analysts say, but Americans--always
optimists!--take a little comfort in the fact that Europeans have paid
more than that for years. But a lot of foreigners are laughing at us
even harder than we're laughing at the Euros.
Did you know that
Venezuelans pay a mere 19 cents per gallon? It's 38 cents in Nigeria.
Turkmenistanis might not have electoral democracy, but they only shell
out $4.50 to fill a 15-gallon tank. Before we replaced Saddam Hussein
with…with whatever they have in Iraq now, Iraqis paid less than a dime
for a gallon of gas.
One of the things that these countries
have in common, of course, is that they're oil-producing states.
Countries that export oil and gas have trouble explaining to their
citizens why they should pay for their own natural resources--and most
are smart enough not to try. Iran, Saudi Arabia, Egypt, Burma,
Malaysia, Kuwait, China and South Korea are just a few of the countries
that keep fuel prices low in order to stimulate economic growth.
But
they also share something else: common sense. Strange it might sound to
Americans used to reading about big oil windfalls, they consider cheap
gas more of an economic necessity than lining the pockets of energy
company CEOs. So they don't consider energy a profit center. To the
contrary; government subsidies (Venezuela spends $2 billion a year on
fuel subsidies) and nationalized oil companies keep gas prices low.
Unlike corporations, governments don't care about turning a profit.
They care about remaining in power. Their reliance on political support
(or, if you're cynical, pandering) allows them to do things our
much-vaunted free market system can't, such as make sure that people
can afford to eat and buy enough gas to get to work.
Like the rest
of the world, Venezuelan consumers have been squeezed by rising prices,
and even shortages, of groceries. In 2007 Venezuela's socialist-leaning
government decided to do something about it. First they imposed price
controls on staple items. When suppliers began to hoard supplies to
drive up prices, President Hugo Chavez threatened to nationalize them.
"If they remain committed to violating the interests of the people, the
constitution, the laws, I'm going to take the food storage units,
corner stores, supermarkets and nationalize them," he said. Food
profiteers grumbled. Then they straightened up.
Not even
international corporations are immune from Chavez's determination to
put the needs of ordinary Venezuelans ahead of the for-profit food
industry. Faced with severe shortages of milk earlier this year, Chavez
threatened Nestle and Parmalat's Venezuelan operations with
nationalization unless they opened the spigot. "This government needs
to tighten the screws," he said in February 2008, promising to
"intervene and nationalize the plants" belonging to the two
transnational corporations.
Miraculously, milk is turning up on the shelves.
When it works, nothing is better at creating an endless variety of
reality TV shows than free market capitalism. But when it doesn't, it
isn't just that extra brand of clear dishwashing liquid that goes away.
Businesses fold. Banks foreclose. People starve. And no one can stop it.
The G8 nations met in Osaka last week to try to address soaring food
and energy prices--a double threat that could plunge the global economy
into a ruinous depression. But the summit ended in failure. "Any hope
that the G8 meeting would result in coordinated monetary action--or
concerted intervention in foreign exchange markets--to counter rises,
principally in commodity prices, was dispelled by their failure to
agree on the phenomenon's underlying causes," reported Forbes.
So the G8 ministers punted. "Due to the lack of consensus, they have stated the need for further study," wrote the magazine.
The problem isn't the weak dollar or the non-existent housing market.
It's capitalism. A sane government doesn't leave essential goods and
services--food, fuel, housing, healthcare, transportation,
education--to the vicissitudes of "magic" markets. Non-discretionary
economic sectors should be strictly controlled by--indeed, owned
by--the government.
Consider, on the one hand, snail mail and
public education. The Postal Service and public schools both have their
flaws. But what if they were privatized? It would cost a lot more than
42 cents to mail a letter from Tampa to Maui. And poor children
wouldn't get an education.
Privatization, particularly of
essential services, has always proven disastrous. From California's
Enron-driven rotating blackouts to for-profit healthcare that has left
47 million Americans uninsured to predatory lenders pimping the housing
bubble to Blackwater's atrocities in Iraq, market-based corporations'
fiduciary obligation to maximize profits that is inherently
incompatible with a stable economy whose goal is to provide people with
a decent quality of life.
No one should pressure industries that
produce things that people need in order to live to turn a quarterly
profit. No one should go hungry, or remain sick, because some
commodities trader in Zurich figured out some nifty way to take an
eighth of a point arbitrage spread between the price of a hospital
stock in New York and in Tokyo.
P.S. If you're reading this in Caracas, please mail me some gas.
COPYRIGHT 2008 TED RALL



