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Josh Sternberg

Josh Sternberg

Posted: May 27, 2010 01:10 PM

Should Government Be Responsible For Corporate Disasters?

What's Your Reaction:

There has always been, and will always be, natural disasters. And since the moment our long-dead ancestors stood upright there have been, and will always be, man-made disasters. For millions of years volcanoes erupted, earthquakes shattered, rivers flooded and only those unfortunate souls who stood at the base of the volcano, the crack of a fault line, or the banks of a river were affected by Mother Earth's indigestion.

But now we live in a technological era, where we can watch devastation and suffering from thousands of miles away in the comfort of our own home. Mix that up-to-the-second technology with the fundamental American right to criticize corporations, as well as our elected officials, and it's no surprise we're hearing such vitriolic missives about the BP oil spill in the Gulf of Mexico.

A month into the oil spill, the blame game has begun and while there are plenty of parties at fault, the broader message of how the government's response is slow doesn't quite make sense. Indeed, the New York Times is debating: Is this Obama's spill now? And it really boils down to a matter of opinion: Do you believe the company who owns the rig is responsible for clean up or do you believe the government is responsible for the clean up?

To compound that message, we're hearing, "This is President Obama's Katrina." Indeed, as Manny Ortiz, senior lobbyist at Washington, D.C agency Quin, Gillespie & Associates told PRNewser, "They (Republicans) want to create the notion that this has been mishandled."

While there are some parallels between Katrina and the BP oil spill, they are superficial.

For example, both are in the same location: Gulf of Mexico. And everything from the destruction caused by both to the aid they require - economic, recovery and rebuilding - is something most can't quite fathom. Katrina was a hurricane that swept in and did damage because of shoddy engineering, and the BP oil spill is discharging thousands of barrels a day into the water because of, well, shoddy engineering. But that's about it. Oh, and apparently the government's response to both was way too slow. Which begs the question, why does the government need to respond to a company's problem?

There are some who are saying that the Obama administration's lack of response (and/or help) is similar to that of President Bush's slow response to Katrina. But looking closer at these sentiments, it's hard not to see the political football bouncing in numerous directions:

The BP oil spill was because of failure of a company (actually, several companies) in a poorly regulated industry.

People are calling for the government to step in, but the government doesn't have the resources to fix it. You can't complain about lack of government resources when you don't pay your taxes (47% of U.S households don't pay income tax), which finance those necessary resources - both in the labor and in parts. And you certainly can't complain about lack of government resources when you have a political ideology that believes the government that governs least, governs best.

Paul Boudreaux, an environmental law professor at Stetson University's College of Law, stated in the St. Petersburg Times: "Certainly the government could take over" the oil cleanup, he said. "But I'm not sure if the Coast Guard would have any more resources to deal with this than BP does."

So the government can't help, and BP can't seem to figure it out. Is there an alternative way to fix the problem? The answer may lie within BP's competitors. If all the other major oil companies pooled their resources - both financially and technologically - there must be a solution.

It was reported that rival oil companies are chipping in, but can they do more? This is your chance, ExxonMobil, to do some good. You listening, Shell? Your companies can provide the means to plug this leak and do something your industry hasn't been able to do in a long, long time: look good.

The adage, "With every crisis there's opportunity" holds true in this situation. The oil industry has the ability to change "best practices" and work with the government to create a non-profit non-partisan entity to specifically develop and seek out technologies dealing with spills and other industry-related disasters, which can further become the lead organization on any spill.

A buy in from each of the major corporations would allow this oversight organization the ability to get going and maintain itself. This body could regulate an industry that is severely under-regulated and create its own enforcement arm. Essentially, this could be an industry watchdog that has financial support from oil companies, as well regulatory and compliance input from government.

This demonstrates not only forward thinking, but a system of measures in place that should another disaster happen (and it will), each entity (company, government, oversight organization) can work together to a) respond and b) solve the myriad problems that occur.

While there are many issues at play, placing blame on this administration by comparing its response to that of the previous administration's response to Katrina is misguided and to put it simply, not fair. The actual oil spill and clean up is not a government issue, but the regulation and oversight, as well as the endemic issue of being addicted to oil is.

Add this to the list of reform this administration should tackle. We're seeing a government work for its people, and as history has shown, when our government operates for the people and not for industry, positive change happens.

 
 
 
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12:30 PM on 05/28/2010
So many problems with this article, it's hard to begin.

"The BP oil spill was because of failure of a company...in a poorly regulated industry."

You left out, "GOVERNMENT regulated industry." Just another corrupt arm of the government, not doing what it suppose to, but yet the American taxpayers still foot the bill.

Bringing us to:

"People are calling for the government to step in, but the government doesn't have the resources...You can't complain about lack of government resources when you don't pay your taxes (47% of U.S households don't pay income tax)..."

The people who do pay taxes ARE paying for a government agency to be keeping an eye on these corporations that might have an adverse effect on American jobs and our ecosystem. Furthermore, the government cannot regulate Mother Earth, and yet you expect the government to have all the resources (money) needed to help out during a natural disaster even though only 47% of Americans pay taxes.

If U.S. officials had followed up on a 1994 response plan for a major Gulf oil spill, it would have a fire boom on hand and we may have nipped this in the bud. None on hand. Once again, the American taxpayers paid for something and got nothing.

There are so many more things I could list but, Huff limits word usage and I would submit that if you really want to know, you will investigate for yourself. Knowledge is power.
01:17 PM on 05/28/2010
well said and so true.
10:28 PM on 05/29/2010
Great points rr, but aren't we harping on semantics? It is assumed that government regulates industry, for good or bad.
If we were to outline what led to this situation, where would we begin? What party platforms and policies led us to ruin? What is the next step- what do the citizens do?
10:35 AM on 05/28/2010
You can't have it both ways. The cornerstone of Obama's presidency is "government does it better." That is the lefts entire argument. When Bush failed the lefy just said he was incompetent and didn't believe in government anyway. That is not true with Obama- his is a big government guy. He offers big government solutions. He is a believer and yet government hasn't delivered in actually helping or in leadership. Obama seems just as detached as Bush. This plays to the tea party belief that it is not a left right issue but a Washington/ rest of the country issue.

The left offers big government solutions but it has just been 2 years of big government failures. Banks, mortgages, immigration, healthcare, oil spill, whats next. If you want to convince people government can solve problems it is best not complain how hard these problems are or passing the buck.
01:17 PM on 05/28/2010
right on.
07:25 PM on 05/27/2010
We neuter governments role in being the arbitrator of profits and social responsibility and then look to it, like Bobby Jindal, to solve the problems created by unbridled free-market sharkdom.

It's interesting that the Republicans will unleash a McCarthy-like attack against those who voted for healthcare, but will those marionettes that sang, "Drill Baby Drill", be subject to a moral attack by citizens demanding government accountability?

BP spent over 200 million in advertising themselves as "green" and environmentally progressive. What can they say now, "We were just kidding!" ?
11:14 AM on 05/28/2010
No. "We", as you put it, put Dems in control of congress in 06. "We" gave the Dems a filibuster proof majority and the White House in 08. "We" said loud and clear we wanted more government control as the Dems had successfully convinced Americans that business was bad and it was time to trust government. Here we are in 2010 and "we" are seeing that the only thing worse than big business is big government. When this disaster occurred the only thing government seemed able to do about it was spread blame.

Heck of a job Barry.
07:25 PM on 05/27/2010
The disconnect between corporate actions and real world consequence has become a smoky haze of limited liability.Wall Street was not responsible, it was those poor, dumb people who took an A.R.M. from the well-intentioned mortgage brokers,who in turn, threw them onto a craps table for weathier bettors to play games with.

BP was not responsible (at the dawn of of the disaster)-it was the guys at the rigging company.

All you need to do is look at the number 75. A $75 million liability dollar cap on a deep-sea oil-drilling operation? What could go wrong, digging a mile under the sea?

http://www.politicsdaily.com/2010/05/26/oil-spill-liability-caps-oddly-raising-them-could-help-bp-som/

'..companies like BP must pay to clean up any oil they spill, but their liability costs are capped at $75 million if they are not found guilty of gross negligence or willful misconduct....Senate Democrats have introduced bills to exponentially raise oil companies' liability to $10 billion or even eliminate the caps altogether, thus forcing the companies to pay unlimited sums to anyone adversely affected by the spill, including individuals, businesses and local governments.
...Republicans have blocked those efforts three times...
"This is really about whose side do you stand on? Do you stand up with the taxpayers or with multi-billion-dollar oil companies?" Sen. Robert Menendez (D-N.J.)
07:23 PM on 05/27/2010
In light of their price-gouging practices during the 00's, the cozy relationship they carved with MMS, and the secrecy of the Cheney energy policy meetings that kicked off the bare-naked era of regulation in the 00's, I'd forget about giving the other oil companies an opportunity for positive PR.
They are all guilty of being pigs at the trough.

Oil conglomerates need to reassess their profit models and reallocate resources towards ensuring this will not happen again. Ever. Will they step forward and self-regulate to acceptable standards? That's a hilarious notion.
Heavy-handed non-partisan policy must be mandated--government intervention is imperative. Lax regulation reigned over this oil-profiteers parade and the results are a toxic soup, formerly known as the Gulf of Mexico.
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AxelDC
01:27 PM on 05/27/2010
According to Republicans, the government should do everything corporations want, including subsidizing them and cleaning up their messes. They should not be taxed nor regulated, and we the people should be grateful for the privilege of servicing them.
11:22 AM on 05/28/2010
If a United Airlines plane crashes we would expect the government to respond AND clean up the mess. This is what we pay taxes for. We expect the government to be cops and help to prevent crime. This is what we pay taxes for. In this case the government not only did not use our tax dollars to play cop, they also did not use our tax dollars to be ready for a possible emergency. This would be like building an airport and not equiping it with emergency vehicles.

The inability of government to be able to repsond to this disaster is clearly a major failure of government.
01:27 PM on 05/28/2010
I almost agree manapp99, but they did use our tax dollars fund another great program to study how to advert another oil catastrophe in 1994. Study done, report submitted for implementation, and no follow up by our government. Go, go government programs!

Can we please pay for more?!?