No Socialists? Really???… – Reason #74


Only 81 Days Remaining!

“This Liberal would be all about socializing…”

During a 2008 Congressional hearing, a Shell Oil executive stated that he could “guarantee because of the inaction of the United States Congress…” that $5 [for a gallon of gas] would look like a low price in the years to come “unless the demand comes down” and if they [oil companies] are prohibited from exploring for “…new reserves and new opportunities to increase supplies.”[i]  In turn, Representative Maxine Waters (D-CA), pointing her finger, responded excitedly:

“And guess what this Liberal would be all about.  This Liberal would be all about “socializing”…uh…uh (silence) would be about basically, taking over and the government running all of your companies.” [ii]

Thankfully, that has not come to pass.  Yet, during his first two years in office, Obama overtly marginalized and demonized big business.  The auto and bank bailouts as well as the problems with Fannie Mae and Freddie Mac have interlaced government and big business, creating the same controlling relationship over business as with the states – complete with the appointment of someone to tell us how much corporate executives should be paid.

As of January 14, 2011, the U.S. Government still held a 33% ownership share in GM,[iii]9% in Chrysler[iv] and 92% in AIG. [v]  Through the second quarter of 2010, U.S. taxpayers were put on the hook for approximately $148 billion in return for a 79.9% ownership share in Fannie Mae and Freddie Mac[vi] -two mega-entities owning or insuring approximately $5.7 trillion of the mortgage market[vii]– which the IMF has recommended should be “either privatized or converted to public utilities.”[viii]


[i] John Hofmeister, Shell Oil President, (May, 2008), originally broadcast on The Fox Report, posted on YouTube.com on May 23, 2008, by “ElephantOwnersDotCom,” Maxine Waters wants to “Socialize” Oil Companies, retrieved January 28, 2011 from http://www.youtube.com/watch?v=niJAkR_6tKQ

[ii] Representative Maxine Waters (D-CA), (May, 2008), originally broadcast on The Fox Report, posted on YouTube.com on May 23, 2008, by “ElephantOwnersDotCom,” Maxine Waters wants to “Socialize” Oil Companies, retrieved January 28, 2011 from http://www.youtube.com/watch?v=niJAkR_6tKQ

[iii] Huffington Post, (January 14, 2011), The Huffington Post web-site, GM, Chrysler Beef Up Lobbying, Despite Government Ownership, retrieved January 28, 2011 from  http://www.huffingtonpost.com/2011/01/14/gm-chrysler-lobby-strong-_n_809042.html

 

[iv] Huffington Post, (January 14, 2011), The Huffington Post web-site, GM, Chrysler Beef Up Lobbying, Despite Government Ownership, retrieved January 28, 2011 from  http://www.huffingtonpost.com/2011/01/14/gm-chrysler-lobby-strong-_n_809042.html

 

[v] Peter Schroeder, (January 14, 2011), The Hill: On the Money, AIG finalizes plan to exit government ownership, retrieved January 28, 2011 from http://www.huffingtonpost.com/2011/01/14/gm-chrysler-lobby-strong-_n_809042.html

[vi] Jonathan R. Laing, (August 28, 2010), WSJ Digital Network, Barron’s, What’s Ahead for Fannie and Fred?, retrieved January 28, 2011 from http://online.barrons.com/article/SB50001424052970204313804575451602435766686.html#articleTabs_panel_article%3D1

[vii] Jonathan R. Laing, (August 28, 2010), WSJ Digital Network, Barron’s, What’s Ahead for Fannie and Fred?, retrieved January 28, 2011 from http://online.barrons.com/article/SB50001424052970204313804575451602435766686.html#articleTabs_panel_article%3D1

[viii] Associated Press, (January 25, 2011), Chicago Tribune web-site: Nation & World, IMF says US should consider privatizing mortgage giants Fannie Mae and Freddie Mac, retrieved January 28, 2011 from http://www.chicagotribune.com/news/nationworld/sns-bc-af–imf-financialcrisis-us,0,7079526.story

Obama and America’s Defense

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