The formula started in the 1970’s with the oil industry. The Arab Embargo cut off oil supplies and caused gasoline and energy prices to skyrocket. The Federal Government and the mainstream media developed the formula that still works today.
First, you demonize the industry. Blame U.S. oil companies for the problem. Beat them to death daily because they are benefiting from an event that they did not control. Accuse them of withholding supplies to make it worse. Tankers offshore not being delivered. Once demonized, then regulate to make it worse. Create the Department of Energy and create greater artificial shortages by allocating all energy products. Then, regulate to make sure no more U.S. energy sources can be tapped creating greater dependence of foreign crude and finished products. Every time the problem occurs, repeat the formula. Hold Senate hearings, bait the always compliant media to run more demonizing stories. Add more regulations, and put on windfall profits taxes, etc.
The result of the successful formula. Dozens of refineries closed. No offshore drilling or drilling in Alaska. Hundreds of US jobs lost in the oil industry. Oil companies like Citgo sold to countries like Nicaragua. Loss of small oil companies leaving huge international oil companies who care little for doing business in the US. Good job Washington, a once grand industry that was the pride of the world destroyed for all practical purposes and all the jobs and taxes gone with it.
The fallout of this. The auto industry goes next. Demonize them for not moving fast enough to make fuel efficient cars that only the government wants. Protect the UAW which is eating them alive. Make sure we have huge swings in gasoline prices by your good work with the oil industry and no domestic production. Stick them with regulation after regulation, like CAFE standards, etc. Stand back and admire your work. You have destroyed GM and Chrysler and Ford is barely hanging on. Step in and run GM and Chrysler. The US, the pride of the world for auto production, is now third rate with the two companies run by you, the government, likely to fail. Nice job government. You have taken manufacturing from the primary part of the GDP to being second fiddle to finance. Wait, let’s take out the coal industry while we are at it. The new president actually said he might bankrupt the coal mining industry. With the demonizing long underway with mining, and the potential cap and trade, the government will shut down another industry and put thousands of miners out of work and eliminate another domestic energy source. Of course, we will still export to China and they may keep some semblance of the coal business in operation.
Now, it’s time to do the same with the major piece of the US GDP, finance. President Obama, fresh from receiving the Nobel Peace Price for doing nothing made an impassioned speech demonizing the financial sector. Phase one, demonizing is well underway. Next, regulation. First, let’s force the banks to pay three years of FDIC dues all at once. Then let’s regulate their pay practices. Then, let’s make them re-finance the same people who never could afford a home mortage the first time, a second time. Let’s stop them from raising fees. Barney Frank, the man who helped Chris Dodd create the housing crisis now wants to destroy the entire banking and financial system in America with more regulation.
It’s a long list. Nuclear power, the oil industry, the mining industry, the auto industry, the financial business, and now, last, but not least, let’s get the insurance business. The demonizing has begun.
What will be left when government is done? Government, that’s all. Won’t that be a great country?
