Big Oil Is The Problem - Not The Solution

Let me get this straight...

• We have a massive budget deficit - a large portion of it due to a) huge and enduring annual expenditures to fight wars in the middle east to protect the supply of oil for our economy and b) a spectacular lack of tax revenue from big business, including big oil.
• Oil companies are reporting massive profits. Not revenue gains...profits. Check it out HERE and HERE.
• Prices for gasoline are at $4 a gallon and going higher - presenting a significant challenge to everyday Americans and certainly for our economy overall.
• Our Federal government provides oil companies tax breaks and tax payer funded subsidies.
• And now the House of Representatives, run by Republicans, is saying that it will not consider ending or reducing those subsidies. Further, we see indication that the Rs will pull out one of the oldest plays in their playbook - blaming the Ds for situations the Rs helped create.

How is this right? How is this the best way forward for the vast and overwhelming majority of Americans?

The answer is...it's not.

The longer answer is...it's not right and the fact that these oil company subsidies were created in the first place, have been allowed to continue and now won't be repealed are all testament to who runs the government. Big Oil and their cousins Big Business and Wall Street run it. And guess what? Leaders in those sectors are more interested in massive quarterly profit margins to boost the value of the stock they hold and so they can earn big bonuses than they are in long term energy solutions that will help the economy overall.

With billions of dollars in profit coming in to oil companies on a quarterly basis for a sustained period of time, a large or even predominate portion of their profit should be used to invest in developing long term, next generation energy sources (wind, solar, other). And certainly, we the tax payers should not be subsidizing them if they do not do so.

But oil companies will not do the right thing unless they are forced to. They will. Not. Do. It. Why would they when then can rake in billions and billions of dollars every quarter? Why would they care that gas prices are going up? And what do they care about 10, 20 or 50 years into the future. Oil companies care about quarterly profit sheets - that's profit every three months. Talking about a decade from now to them is like talking about the year 2498. They won't change on their own. So, we have to make them.

I'm no economist, but I think the solution is obvious...cut all current public subsidies to oil companies and close tax loopholes that allow oil companies to skate out on much of or all of their fair share of taxes. Then, and ONLY then, come back to them with legislation that stipulates that for them to regain (new form) tax breaks or subsidies that they will have to invest a certain percentage of their profit margins in new energy development and show resluts against a set of aggressive timeframes and metrics.

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.