Nobody Could Have Predicted...

Early this week, Exxon reported record profits of $10.71 billion ($10,710,000,000.00) for the fourth quarter and $36.13 billion ($36,130,000,000.00) for the year – the largest of any U.S. company. While some politicians raised furious objections, Bush had a different reaction.

"I think that basically the price is determined by the marketplace and that's the way it should be," said Bush, himself a failed Texas oilman.

In Bush's first term, the California energy crisis continued to unfold. Consumers suffered rolling blackouts that were more than just an inconvenience, they were life-threatening. Traffic lights were out causing accidents and injury. Patients under medical care dependent on reliable electrical supplies were put at risk. As we now know, many factors were involved in the crisis, not the least of which of the callous market and supply manipulation of large energy companies. Coincidently, large donors to Bush and the GOP.

Back then, Bush administration officials repeated claims by Enron and others that California’s problems were caused by the state’s “flawed” deregulation plan—which was not “free market” enough—and strict environmental standards, which limited the construction of new power plants. Bush and Vice President Dick Cheney publicly opposed wholesale price controls by FERC, insisting that any such moves would be a disincentive for power companies to operate in the state. Now, excess profit taxes or any other attempt to rein in this price gouging would keep the oil companies from putting the money back in to research and development. Yeah, that's a good one.

Now, we have to hear this "free market" economic cure-all bull shit once again. Anyone with a lick of sense knows that the "free market" is just an illusion. We have tariffs, market orders, price supports, and subsidies all of which in one way or another take the "free" out of "free market."

Why You Should Not Trust Right-wing Think-tanks When They Talk About "Free Markets" or much else for that matter.


Who's to Blame for California's Shortages: According to the Heritage Foundation

[As political columnist Robert Samuelson noted in The Washington Post on June 13, "the root cause of California's electricity problem is simple: Demand outran supply." In a free market, this imbalance is automatically addressed through changing prices. Prices rise when demand for a product exceeds its supply. These higher prices, in turn, create an incentive for producers to generate more of the product or for consumers to reduce their purchases. Balance is restored because supply grew to meet demand or high prices reduced consumption. In the electricity market, as prices increase, either individual and business consumers restrain their consumption or new electricity supply enters the marketplace until prices begin to fall. ]

Their take, it's all the liberal's and democrat's fault. They completely missed the market manipulation and contrived shortages of the energy companies closely associated with the Republican Party. To further their own political agenda , they conveniently ignore facts. Such as, the so-called "flawed" deregulation was written by republican Jim Brulte with guidance from Enron and the deregulation (license to steal) was signed into law by a republican governor, Pete Wilson.

So when the Heritage Foundation or the American Enterprise Institute come out in defense of the current economic rape of the American people, don't be too surprised.