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Friday, August 24, 2012

Free the Beast of Commerce

What drives commerce is simple: a problem requiring a solution for which people will pay to acquire. It is not the mystery, the hocus-pocus made of it by Obama Administration. Profits are not huge sums of cash at the beck and call of the federal government.

Once upon a time in America there were solutions to problems, there were fixes to broken things. Now, it is a question of what the government will allow to be solved and/or fixed.

Gasoline prices are high, not just because oil as a commodity is high, but because the refining capacity is low. The ability to transport oil over the road versus through pipelines limits the ability of the oil to be transported. There are logistical issues with transporting oil with trucks, the amount of tankers, for one and the HazMat requirement for drivers is another. Then, there are the costs of transporting it over the road versus the economical method of pumping it through a pipeline. All of this increases the price to the refiner, whether owned by the oil company or not.

Oil right now is selling for around $94 per barrel. At the height of the economy, before the collapse, oil was selling for about $130 per barrel. So, why is gasoline selling for about the same price? Logistics. In the old days we used to solve logistical problems such as these. We don't have enough refining capacity? Build a few more refineries. We don't have enough pipelines? Build more pipelines. Simple and it put people to work.

The Obama Administration has done more to kill jobs than any socialist administration I can recall. Carter simply was an idiot when it came to commerce, as most government-centric liberals are. They think they can tame the wild stallion of commerce with rules and regulations; they think they can bend the mighty corporate structure to their will and that it will go one making money for the government to increase enforcement of the regulations they impose.

They don't understand. Some think that they do understand and that they are just trying to wreck things. I'm not so sure. Obama would sure like to have a better economy than he has now, if just to get re-elected and further wreck things in the next four years. The fact is Obama thought there would be a recovery no matter what he did, so he did whatever came to his Marxist mind to do. He wanted universal health care so bad he didn't even know how to write the legislation and let the congress write it for him, with all of their pet projects and Marxist ideas running wild in anticipation of it. It's so bad that trying to implement it will probably bring it down.

He didn't think he could stop the recovery and could slip in any program, any regulation and use the recovery as proof that his Marxist philosophy worked.

Capitalism doesn't work that way, commerce doesn't work that way. What makes a healthy economy is allowing problems to be solved, letting those who need a solution do business with those who can provide them without the government standing in the way demanding its piece of the pie. That is a kleptocracy. That is Chicago politics. The difference is undetectable during a downturn in the economy so it is hard to say that it would have recovered faster were it not for these obstacles to commerce, but it is easy to see that when the recovery does happen it will happen faster in states with fewer union members, with fewer state regulations on commerce. Since the federal government has gotten its thumb in the economies of every state, it is harder yet to see the difference, but there is one and without the government regulations imposed by alphabet agencies, there would be a recovery of epic proportions.

Right now there are trillions of dollars on the sidelines, waiting for some common sense to re-enter the marketplace. This is not all money of billionaires, it is money held by average people afraid to enter the stock market until some sense of rational business decisions are again possible. This cannot happen when there is the specter of Obamacare hanging out there, where any federal agency might target an industry, like oil and coal with predatory enforcement and derail the simple equation of supply and demand.

I don't give a damn who wins the next election, because Republicans have lost their way on these issues as much as Democrats. I don't trust either one to understand the way things work, not even Romney, who should know better. The only way to save this nation is to abandon the laws passed in the last forty years and get back to allowing business to run the way it is meant to.

There should be a repeal of both the Patriot Act and Obamacare if commerce is to thrive and jobs are to be created in the public sector. We'll figure out how to make air travel safe on our own and we'll figure out how to provide health care on our own, we have done both before and I don't see how either of these massive federal boondoggles helps in any way to provide either.

1 comment:

  1. As Silicon Graybeard just wrote on his blog, and as Walter Williams and Thomas Sowell have written a number of times before, it is the many separate decisions and choices made by consumers and producers all throughout the world which drive a free market. The trillions of purchases of goods and services free of regulation, restriction, and theft by fee and tax are what enrich an economy, drive innovation, and create real jobs which benefit society, both financially and in providing a sense of purpose and fulfillment to the employed and the employers.

    And the profits benefit _everyone_, in spite of what the Marxist fools and the OWS crowd would have us believe.

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