In past times of crisis or struggle, the citizenry of nations would stand united in support of their country against a common enemy. Since Vietnam, finger-pointing is the only course of action that can be agreed upon. Democracies are especially prone to gusts of misconceived indignation that sweep fresh legions of legislative careerists to power.  Much of the blame now falls on the nation’s boogie-man, the oil industry. War, profiteering, and corruption are its preferred modus operandi.

Ostensibly, government must continually peddle favors to big oil in order to fuel the economy. Without big oil, the economy would sputter and domestic tranquility will be shattered. Except: Gasoline and fuel oil account for just over two and a half percent of the GDP. And the automobile industry, supposedly dependent on big oil for its lifeblood, accounts for just three and a half percent. Health care alone accounts for 12% of GDP. The housing industry is twice the size of the gasoline and automobile industries combined. As of yet, general contractors and doctors have not been accused of war-mongering.  The commander-in-chief who orchestrated this mastery of deception has nevertheless seen his approval ratings plummet as a result.

In its self-appointed role as the nation's bellows, the media has fanned the flames of fashionable outrage at ExxonMobil’s “record” profits of $36 billion in 2006. That figure represents a moderate 10.6% return on revenue after accounting for over $300 billion in operating costs. Microsoft made a return nearly three times as great. Also faring well were notorious price-gougers Bank of America (19.6% return) and Coca-cola (21.1%).  Never ones to shy away from an act of superfluous legislative grandstanding, the House passed a resolution to prevent “unconscionable pricing” of gasoline. Perhaps it should be amended to include checking accounts and soft drinks.

Government, in its unrelenting subversion free markets, believes that all problems can be solved through more government. Federal subsidies pay for investments in technologies whose time has not yet come, and whose development would come swiftly in a ripe and ready market affected by a multitude of factors outside of the government’s control. In the 1990’s, General Motors, with government assistance, invested over $1 Billion in the world’s first mass-produced electric car, the EV1, and both consumer and corporation found the technology too costly and problematic for practical daily transportation. Currently, a Toyota Prius costs more to own and operate than a conventionally powered Toyota Echo. An alternative energy source will emerge if it becomes cost-effective. That has not happened. Should new fuels and vehicles emerge in an economically competitive (read: unsubsidized) environment, either existing companies would adapt to meet the newfound demand, or new companies will emerge to fill the void. Oil is a commodity, and the values of commodities are set by markets. Markets are quick to embrace efficient (profitable) technologies.

Although it lacks romance, the country’s sustained economic growth is directly tied to the removal of government from the private sector- not to oil. Tax cuts freed up personal wealth, stimulating investment and consumption (and reduced dependence on government programs, and increased charitable giving, and brought down the deficit, and….). The economic dynamism of the country will prevent any industry from forcing any “unjustly” priced product on consumers. The only gouging being done is by shameless politicians whose desire for power outweighs their dedication to democracy.