I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it.

- Thomas Jefferson

Big Pay Little Competition

Occidental Petroleum’s chairman and chief executive took in more than $400 million in compensation last year, the company said in a filing, one of the biggest single-year payouts in US corporate history. [Read]

There are those who feel if they berate the oil industry for the excessive profits and compensation they are opposing the beauty of the free market. Au contraire, to bash the excessive compensation and profits of oil companies is not only to embrace free markets but to make a call for competition.

When there is real competition, excessive profits/pay would encourage and demand competition enter the market, but when you have a government supported oligopoly where the barriers to entry have been raised and embraced by the existing corporations, you do not have a free market. When competition cannot easily enter the market, or even enter a market where there are 400+ million dollar surpluses for one employee, competition is dead. Where is the free market?

It is time not to rail against the oil companies but the government and all who favor erecting those barriers to entry. You, we, everyone is paying excessive prices for oil because the government has frozen out competition. Perhaps before you rail against the oil industry, you should shout at every politician, the Sierra Club, Green Peace and every other group that has helped erect the barriers to entry, as they are costing us all billions, and we still use and will use oil.

You may find this hard to believe, but the “environmentalists” and bureaucrats are the best thing that has ever happened to the oil companies. Competition is dead, thanks to the ignorance of “do-gooders.”

(But they mean well… Would you rather have a cold, unfriendly cardiologist perform your open heart surgery or the really well meaning gardener? Meaning well means nothing.)


posted at 09:28:04 on 04/11/07 by clearpolitics - Category: Economics - [Permalink]

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