Hey Remember Capitalism?

Once again Congress has seen it fit to conveniently forget the concept of capitalism and of a laissez faire economy. It was a noble concept founded on the principle that hard work leads to rewards for the individual who has worked hard. It is, in fact, the exact opposite of the concept of Communism.

I can understand everyone's concern about rising oil prices and higher gas prices than we've ever seen before. I can also understand Congress' need to find a scapegoat during an election year. But at some point Americans are going to need to realize that Congress has better things to do than to question the profits of the oil companies.

For years now, Congress has been subsidizing the oil companies through tax breaks. In order for the oil companies to remain profitable, the government has given tax breaks to cover the costs of research and development. I don't know if these tax breaks extend to more local oil companies or if they only apply to the global competitors, but it seems to me that they are creating an unfair advantage for these big players in the oil market. Now they want to question the fact that they are making money? It's almost as if they are surprised that something they were throwing money toward is actually making money without them. It is yet another example of the liberal philosophy that nothing can function on its own without the help of the government.

But I digress...As we all know from basic economics oil is a commodity like every other consumable product we buy. And like its counterparts, it follows the basic trends of supply and demand. For those forgetting this economic principle, here's the short version: when supply is high and demand is low the price is low, and when supply is low and demand is high the price is high. It goes like this, if Hollywood announces that a diet of only eggs will make you lose weight then everyone will want some eggs. However, the number of egg farmers will probably remain the same for a while, thereby driving up the price of eggs. The only way to combat this is to find another egg farmer to start supplying the need of more eggs or get your own chicken.

Oil follows the exact same model. OPEC has determined that they are keeping up the supply up enough to meet the global demand, so they are not going to increase production. Translated "We like the huge profits we are getting from huge demand." So until the oil guys bring their wares to the table, we find a new place to drill (ALASKA) or until you get your own oil well like this guy, we are at the mercy of the global demand and prices of oil.

I find it oddly ironic that less than a week ago the Congress passed the farm bill which would subsidize farmers who are going to be selling their crops on a global market which is experiencing higher prices than normal. Yet this week they are raking the oil companies over the coals for doing exactly what their subsidies were designed to do. I am not at all saying that their legislation for the farmers is a bad thing. My father-in-law is a farmer and I know they work very hard for their profits which don't come close to that of oil companies.

It still amazes me that we have elected people to spend their time questioning the very fruits of the economic design of our founding fathers. While all the issues that the candidates are yelling about are left unattended. I don't see Congress asking auto makers why the price of vehicles has gone up since the 1920s. Or why don't we find out why every year the salaries of professional athletes goes up? Or better yet, why don't we ask the dairy farmers why we are paying $4 a gallon for milk? The fact is, people are still buying cars, they still buy tickets to baseball games and nobody likes cereal with water in it. So the government should just get over it and enjoy the tax revenue that pays their salaries.

Please Congress, perhaps its time to start remembering the basics of our Republic's founding documents. Laissez faire means "let do" so please let us do. Allow us to be entrepreneurs or literally "risk takers." Let us start businesses and fall flat on our faces. The lessons we will learn will make us a better country and better stewards of our liberty. Instead of making another generation of government dependents, why not create the next generation of American citizens capable of governing ourselves.

If you want to read a few of the quotes from today's hearing click here.