OmegaRuby and AlphaSapphire
August 19th, 2011, 10:27 AM
when ever a enegy company namely oil posts high profits people call or suggest energy companies be nationalize.Should a country nationalize it energy resources or not?If so what should the income be spent on?Besides energy resources should other thing should or shouldn't nationalize?
August 23rd, 2011, 7:12 PM
As good as it may sound, nationalization of energy won't work. In fact, nationalization could make the energy crisis even worse. All the government would do is raise taxes and restrict production and supplies, much like the Obama Administration is currently doing with his moratorium on any and all offshore drilling.
Robert Whitworth of Genesee Township, Michigan, wrote a letter to the editor of the Flint Journal during the run-up in prices in the middle of 2007, explaining what a government take-over of energy would really entail. Although I can't seem to find a link to the article as of now, I saved the article from the Web from when it was online shortly after the letter was published, shown below in the quote box:
(Note, certain points in the letter were boldfaced by me for emphasis.)
Government is the gas gouger
FLINT JOURNAL LETTER TO THE EDITOR
THE FLINT JOURNAL FIRST EDITION
Thursday, July 12, 2007
In his letter of June 13 ["Nationalize the oil companies," Your Views, Page A14], Harry Neuman wants the federal government to take over the oil companies.
Does he really want to put the same bureaucrats that can't keep the VA hospitals from crumbling and can't close unneeded military bases in charge of our oil exploration, distribution, refining and retailing?
The government does nothing cheap, easy or fast. Its first step would be to appoint relatives and cronies to run the companies. It would then study every decision to death until the tax dollars were used up.
Unlike real businesses, the government does not operate based on efficiency and economics, but instead on politics. The obscenely high oil company profits that he refers to are about 10 cents per gallon. Total government taxes, that he dismisses as low, are 50.5 cents per gallon in Michigan, so who are the real gougers?
Robert B. Whitworth
August 23rd, 2011, 7:24 PM
The primary benefit I see for nationalization of resources in the US is that the oil companies would have deeper pockets if backed by the government so that they could better compete with nationalized corporations from other countries, such as Russia and China.