Friday, August 27, 2010

The BP Oil Spill, Our Political Class, and Pollution of The World

Consider the following examples of pollution that were presented in an article by Ronald Bailey that appeared in the October, 2010 issue of Reason magazine (after reading the four examples, figure out what they have in common):
  • The Nigerian government owns all of that country's petroleum resources. Since 1966, over 456 million gallons of that state-owned oil has been spilled which is comparable to having an Exxon Valdes disaster every year since 1966. Although oil accounts for 90% of Nigeria's exports and 80% of the government's revenues, the Nigeria political class has handled the industry so poorly that thew national petroleum company is now insolvent from a financial perspective. The risk of more pollution from spills is likely to increase as the Nigeria government starts drilling in more remote and dangerous terrain. Mr. Bailey notes that the Wall Street Journal's ranking of countries in order of economic freedom, places Nigeria at 106 out of 183 countries that were ranked, describing Nigeria as "mostly unfree," i.e. the government runs most of the operations in the country.
  • In China, a country that ranks 140th out of 183 in economic freedom (another "mostly unfree" nation), 62 underground coal fires have been burning since the 1960s. These fires started when the country's communist government ran the entire coal industry in the country. The underground coal fires burn more than 20 million tons of coal annually, contributing 2-3% of the entire world's total fossil fuel greenhouse gases.
  • Haiti is ranked 141, just after China on the economic freedom scale, and is also designated as "mostly unfree." According to Mr. Bailey's article, Haiti is currently 98% deforested, making it highly susceptible to storm and hurricane damage. 95% of Haiti's real estate property is owned by the government, giving private Haitian citizens no reason to protect their own property since they own virtually none of the property in Haiti. Haiti shares the same island with the Dominican Republic where virtually no large scale deforestation has occurred so it must be something in how each country manages it's assets that result in the dramatic difference from an environmental perspective.
  • In central Asia, the Aral Sea, the fourth largest lake in the world in 1960, it has shrunk by almost 70% in size since then. Throughout that time, the central communist government in Moscow had repeatedly diverted feeding rivers away from the Aral to support large scale irrigation projects in the Asian deserts of Kazakhstan and Uzbekistan. These now independent countries get poor economic freedom ratings of 82 and 158, respectively.
As you probably guessed it, in every example, the source of the pollution was caused by each country's political class, who rule in a strongly undemocratic manner, where property rights and personal freedom is minimized. The point Mr. Bailey is making is that when faceless government bureaucrats manage their country's' problems, they are unlikely to have a personal stake in the how things are done, just how to get the desired or demanded results. Since these bureaucrats and politicians do not personally own their country's property, they have no stake in protecting them. As a result, four of the world's worst environmental disasters can directly track their source to government actions.

Unfortunately, dictatorships do not have a monopoly on the pollution of their countries. Consider a few examples what the United States government has done to Mother Nature in our nation:
  • The Department of Defense generates 400,000 tons of hazardous waste a year, which is more then the waste generated by the five largest chemical companies in the country combined, and this mountain of waste is outside the enforcement capability of the Environmental Protection Agency. In other words, the biggest potential polluter in the country, the Federal government, does not have to abide by the same rules that the rest of us have to abide by.
  • The Tinker, Oklahoma Air Force base was supposed to recycle all of its hazardous waste byproducts but until recently decided to sell it, not recycle it. Tests have found higher than expected pollution levels from these materials in the underground water sources close to the surface.
  • The U.S. Army's Rocky Mountain Arsenal is only six miles outside of Denver, Colorado. One source I found called the arsenal the "most polluted piece of ground in America." It cost $40 million to clean up the arsenal's 600,000 cubic yards of contaminated soil, soil that was identified as contaminated back in the early 1950s.
  • The Federal government runs the 59 Tennessee Valley Authority power plants. While these power plants expels large amounts of greenhouse gases every year, they too are exempt from Federal environmental regulation.

The same effect is going on in these Federal government examples as the examples pointed out by Mr. Bailey throughout the world. These properties are owned by the government and run by the politicians, they have no personal stake in preserving the properties since they do not personally own them. As a result, the biggest pollution source in this country is the very government that is supposed to prevent the pollution and which has exempted itself from its own regulation and oversight.

Which brings us to the government's role in the BP oil spill:

  • No one seemed to care that those government employees that were supposed to safeguard the Gulf from an oil spill were either busy surfing the Net for pornography, accepting vacation trips and gifts from the same companies they were supposed to be regulating, were busy setting up career changes to move to the same companies they were supposed to be monitoring for safety, or were neglecting to do the required number of rig inspections. These employees had no personal stake in the safety of the Gulf, they did not own it (the United States government owns it), and the political class obviously gave them no incentive or direction to take a personal ownership stake in its safety.
  • The political class legislated a trivial $75 million cap on liability for environmental and economic damages from an oil spill. This released the oil companies operating in the Gulf from having any kind of corporate stake in the environmental condition of the Gulf, they could just buy their way out of a oil spill for a relatively nominal amount of money.
  • And the most atrocious piece of political class legislation, the Energy Policy Act of 2005 encouraged and incented the oil companies to go further and further out in the Gulf for oil drilling. The further out they went, the less and less they had to pay the Federal government in royalties. The chance for making billions in profits at the risk of millions in fines made the safety of the Gulf environment secondary.

We trusted environmental safety to our politicians, all of which all over the world caused some of the greatest environmental disasters the earth has ever seen. These politicians were in charge but were not responsible for the ensuing disasters. In all cases, they had no personal stake or ownership of the resources they were supposed to be safeguarding. The scary thing about this phenomenon in America is that the Federal government owns almost two thirds of the physical land in this country. Imagine the potential for widespread ecological damage like Rocky Mt. Arsenal, Tinker Air Force Base, and the Tennessee Valley Authority coal plants.

Several steps from "Love My Country, Loathe My Government" would address these issues:

  • Step 1 would downsize the size of government by 10% a year for five years. Included in this downsizing would be the selling of the 70,000 or so government buildings that no longer serve a purpose (as we discussed in a previous post) and should also include the sell off of government land, with proceeds going to reduce our national debt. If the right conditions and laws for private ownership were put in place, people, companies (oil and mineral exploration companies), and organizations (e.g. the Sierra Club, the Audubon Society) could own Federal land, have a personal stake in keeping that land safe, and would be placed under the enforcement authority of the EPA.
  • Step 34 would replace Congressional members sitting on Congressional committees that are responsible for the Federal departments and agencies that end up polluting public lands, i.e. they would have a personal stake, if not a property ownership stake, in protecting the earth. In the BP oil spill case, any Congressional person sitting on those committees that oversaw the Interior Department's operations, those operations that were negligent in safeguarding the Gulf, wold be removed from their committee post. Before these politicians are removed form their post, they would remove those federal employees from the posts which they failed at. This would put a federal employee's career stake in play regarding public land, air, and water when a personal ownership stake is not possible.
  • While Step 7 would prevent any politician from accepting campaign donations from anyone or any organization except a private citizen, a short term solution in the spirit of this step would not allow any politician to accept campaign donations from any industry that the politician has Congressional committee oversight responsibility for. In the BP case, no politician sitting on any committee responsible for oil exploration and safety would be allowed to accept campaign donations form that industry.

The main point to take away from Mr. Bailey's article and this post is destroy the myth that government and politicians are caretakers of the earth. They are not trusted caretakers, mainly because they have no actual or administrative stake in keeping the earth whole. Another example where "I'm from the government and I'm here to help you" is not the case. Make them accountable by dumping the incumbents in the fall elections and making sure that the three steps above are implemented to ensure that accountability is instituted, from the lowest Federal employee to the highest ranking Federal department heads and Congressional members.


Our new book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at www.loathemygovernment.com. It is also available online at Amazon and Barnes and Noble. Please pass our message of freedom onward. Let your friends and family know about our websites and blogs, ask your library to carry the book, and respect freedom for both yourselves and others everyday.

Also visit the following sites for freedom:

http://www.cato.org/
http://www.reason.com/
http://www.robertringer.com/
http://www.realpolichick.blogspot.com/
http://www.flipcongress2010.com/

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