Evil, Thy Name Is Profit

Posturing and misinformation are perennial maneuvers in the political game, and among the primary tools politicians use to divert the public's attention from what the White House, Senate, Congress, Mayor, Dog Catcher, etc. has done, or failed to do to fulfill the desires that all of them purport to share-- namely the security, prosperity, and freedom from rabid dogs of their country, state, county, city, or whatever little kingdom they rule. The goal of most of this posturing is to assure us, their constituents, that no matter what has been done in the past, THEY REALLY CARE about our problems, so we should keep sending them back to their respective positions of power. We expect this of our political leaders. It's part of the theatre of it all, and we enjoy the mild entertainment value as they jump through various hoops trying to convince us that they are "in touch" and ready to feel our pain.

A recent spasm of pain sharing that has been spewing from Washington lately is their heartfelt consternation that the evil oil companies are actually making money, showing a profit, and (shockingly) seeing a return on their investment. Democrats and Republicans alike are rushing to assure us that they know how hard it is to pay the bill at Chevron, and they're ready to jump into action, although it's the Senate Republicans who are offering us their "Gas Price Relief and Rebate Act of 2006." It's a proposal of dubious merit, and extremely limited economic sense, that seems to want to punish oil companies for making money, while at the same time expecting them to produce more oil, (as long as they don't make too much money at it.) Such notions generally come from the liberal end of the political spectrum, but this time the Republicans are needing the political boost. No matter how little their proposed actions make sense economically, or whether their actions will have any positive effect at all, they're up for reelection soon, and this is an opportunity to show they care more about the little guy than the rich. The rich in this case being the people who provide the gas we use to go to work, drive to the beach, take our kids to soccer and generally function in the modern world. They are the evil people who risk their capital to find, extract, process and deliver a product we all choose to buy. (And yes, we do choose it. Most of us have alternatives. They may be uncomfortable and time consuming, but if we really don't want to buy gas, we can invest our time on the bus, rather than our money in the gas tank.)

Let's set aside for a later discussion the fact that it takes people with money, and the willingness to invest it, to employ most of us little guys. Let's stick to the basic realities of economics. In a free market society, if it becomes a sign of evilness to make a profit when market conditions are right for it, and the government decides to put a stop to such outlandish behavior, where is the incentive to invest? If we want companies to find more oil, build more refineries, and develop alternative sources of power, we need to stop acting like they're the bad guys, and allow them the luxury of some incentive to produce these things.

I don't intend to spout like this often. I'd generally rather just pass on things from other people that I find worthwhile, but I find this whole topic rather frustrating. It shouldn't be in bad taste to make a profit in a capitalist society, unless we're doing it illegally. John Hinderaker at Powerline feels my pain. He's written a point by point response to the "Gas Price Relief and Rebate Act of 2006." Read the whole thing, especially the remarks by Representative Mike Conaway about how much profit the oil companies actually are making right now, and how it compares to other US industries. I found it soothing to read some economic common sense. May it be the same balm to you.

Hat tip: Instapundit