Gas Prices and the Presidential Election

Four years ago I wrote about how gas prices would magically come down during the Presidential election cycle. You can see my posts HERE and HERE.

The premise of my posts at the time was that oil companies and the energy sector of our economy has enjoyed such spectacular and historical profits with Republicans in the White House that they would be willing to take a hit for a few months to help ease one very painful economic issue that most Americans ascribe to "the economy"...and therefore, in theory, lessen their likelihood to turn out to vote or to vote for Obama on the need for a better economy and more likely to be open to vote for McCain.

Based on my personal experience at my local gas pumps that year, I can say that I was right in my prediction about prices.

For the exact same reasons, I now predict that gas prices will rise steadily over the next several months and into prime time election season. To be clear...the energy sector wants a Republican as president for the major deregulation and massive tax breaks they believe a conservative will bring to their industry. Therefore, it benefits them for the electorate to have a reason to be mad at the Democratic incumbent and more likely to vote for the Republican alternative. Gas prices are such an ever day reality in virtually every Americans' life that a steady or steep  rise would really hurt. So, I think oil companies will find ways to raise prices during this election season.

Sure, you'll hear about the threat of a nuclear Iran, reduced refining capacity in the U.S. and general screwed up global economy as reasons. And yes, some of those things do have an impact on gas prices here in the U.S. But think about this: four years ago we were in "hot" wars in Iraq and Afghanistan, and in the absolute depths of the economic crises...and prices at the pump when down!

No, what you need to do is compare all that international and infrastrcuture reasoning with the motivation of US energy companies to sustain record profit margins on a quarterly basis...and my opinion is you see the primary reason for gas prices going up now. It's a long term strategic play by big oil to do what they can to maximize the chances of a Republican winning the presidency...and more seats in Congress if possible.

So to close, gas prices at the local Shell station near my house in the Seattle area at $4.09 per gallon today, March 13, 2012. I'll check back with you in the early summer and then October to see where we're at and if I'm correct on my prediction.

US Supreme Court: Company = Person

Last month the U.S. Supreme Court decided a case regarding "corporate personhood" that reversed limitations on how much money corporations can donate to political campaigns.

Loaded with conservative judges, the court decided that the law cannot discriminate between companies and individuals when it comes to free speech. Free speech for individuals includes the right to donate funds to third-party political advocacy groups...the type of groups that produce "Swift Boat" advertising during campaigns. So, like an individual, companies can now spend essentially whatever amount they want on political campaigns in this way where before there were understandable limits.

And guess what? Less than a month later, a big DC lobbying firms is counseling corporations on how they can use this new ruling to pour massive amounts of money into campaigns without public scrutiny.

In addition to the influx of unlimited amounts of money into the political arena via elections funding, the primary thing that's disturbing about this is how the ruling puts corporations on the same footing as human beings.

Sure, companies are made up of people, but they are not a person. The sole purpose of a corporation is to make profit. They have no moral obligation to society at all. They exist to make profit. That's it. So, they spend money to support candidates that help that profit mission. As of this Supreme Court ruling, they can now spend more than ever.

For those of you thinking that this is not all that bad or perhaps no big deal, ponder this: Is the Exon Corporation the same as your baby girl or boy? Do you think GE is the same as your grandmother? Do those companies have the same interests as you do for your family? The defense of our nation? The education of your children? For disease prevention? For creating a job in the US for your brother or uncle? No. They do not. The could not care less about these things. Only making money. And now, they will have more say than ever in influencing who gets elected to government. Thanks Supreme Court.

Finally, I would also add that conservatives often cry loud and long about "activist" judges on the bench. Well, the decision in question here is clearly "activist" as it changes long standing law to the clear benefit of some and the clear detriment of most. But hypocrisy is not new to politics generally and no stranger to conservatives by any stretch.

Economy of the Walking Dead

My friend Sean e-mailed me today and said, "You ever just take a pause at work and look at people sometimes? They look like walking zombies. I don't know if it's the economy or the weather, but it's kinda weird."

From where I sit I can confirm that it's true. And yes, it's weird. If you can afford a few seconds, check out the parade of co-workers and observe their look and demeanor. Remind you of a scene from Night of the Walking Dead?

For those of you not living in the Northwest, I can report that this winter has been LONG with a lot of gray skies, cold temperatures, rain and snow. So, the weather may indeed have an impact on people's collective mojo.

But, I think the weather in Seattle and this area of the country has been like this for pretty much ever and the zombie-factor is actually more attributable to other things more related to the economy and the state of corporate America today.

Indulge me. Try this on for size and see if it seems familiar...

• Most people are working under a lot of stress because they're being asked to do the work of several people. Who among us has seen their job get easier with a manageable workload and reasonable, achievable expectations? Not anyone I know. It's gone the other direction...by a lot. In recent years, this happened as companies sought to "maximize profits" in the short term. Now, it's still happening, but because companies need to "minimize losses" in the near term. In either case, over an extended period of time now (years) companies have cut people, budgets and resources and made work very, very difficult for most of us. Clearly this is stressful, demoralizing and un-motivating. No wonder people walk around looking shell-shocked.

• Also, we all know layoffs can happen at any time. Hell, millions have lost their jobs over the last several months and any one of us could be next. The ever-present possibility of the axe falling creates stress and for many a sense of hopelessness. Not good.

• Workers - at least ones I know - aren't getting ahead in their organizations either, and their salaries have stagnated. In some cases, wages have been frozen and merit increases eliminated. Again, not motivating to say the least and a key contributor to the "why bother" mentality that many end up wearing on their faces as they trudge the corridors of their office buildings.

• Finally, you throw in stresses at home, a spouse or significant other with the same work-related situation (or worse, laid off), kids and all that they bring to the stress level, and yes the weather along with whatever else is going on in life and you get...zombies! Just like Sean said.

I realize that not everybody fits these scenarios in their jobs, but I have to say that upon reflection and observation they do seem to be true and enduring characteristics of working at a company over the last few years - and now seeming to get worse.