Should oil companies be nationalized or should they be allowed to sell their oil as an independent business? This is an argument that has been growing ever since the beginning of the 21st century. As early as 2001, the price for gasoline has risen dramatically, creating many concerns for the citizens of the United States. There are many reasons believed to be the cause of this, such as the Iraq War, which is one case in which the government is blamed. The government is also blamed because of the high gas tax it puts on oil companies, and on gas at the pump. People argue this is how the government controls oil prices, by using their ability to put a tax on oil. Both sides have valid points defending their issue.
On one side there are the oil companies and on the other side are the people of the United States, who are the consumers of oil. The people use the government as a threat against the oil companies since the government itself is not often involved. Oil companies are raising prices for gasoline at the gas pump dramatically as they make record profits. This is a very unethical thing to do, but since oil companies are independent no one can stop this from happening. Oil companies say people should limit the amount of gasoline they use, but people don’t have any choice but to buy over priced gasoline, because they commute to work. For these reasons oil companies are unjust and should be nationalized by the government.
The Oil Company’s one mission is to make money, and they are not loyal to one country but in fact settle in many different countries. Since they are international they will not care for the people of one country, even if it’s the United States of America. The company works for personal gain because only a few people run it, such as the CEO’s. Because of this, the government, which for the majority is run by the people, should be able to control the actions taken by oil companies.
If the government controls the oil prices, they will have to listen to the people of the country and will then bring down gas prices. Not because they want to, but because they will have too. Oil companies, however, will do everything in their power to resist government intervention. If they have to they will bring down their prices for a short amount of time to make the government happy. This strategy works well for the oil companies because the government does not get involved unless it’s forced to by the people. It’s been this way since the 1870’s when people first began to complain about big businesses that were abusive towards the people.
So the question comes down to, should people trust the oil companies more or the government more. This question can be answered if one looks at the history of big business in the U.S. There is clear evidence that the government, in the end, proved much more loyal to the people of the nation than the big businesses did. Throughout history companies have always put their money first before the average citizen, and this may never change. The government is controlled by the people, for the majority, and because of this people will be able to control the gas prices. Oil companies throughout the years have always tried to steal money away from the citizens of America. This is not always because of personal greed though, but because of competition between each other. This is another reason why these companies should be nationalized; because the competition between the companies is making them be unfair, and abusive toward the everyday consumers of oil.
Oil companies have never been honest businesses, and there is a lot of evidence to back this up. Evidence that backs this up is the known fact that oil companies pay off politicians to look over their unethical actions. For example, Mike Whitney quotes from his article, “there’s not an inch of daylight between the Exxon boardroom and 1600 Pennsylvania Ave,”(Whitney). This is true because most politicians have close ties to oil back at home which makes them very hesitant to go against oil companies.
One reason that often protects oil companies from any government involvement is Laissez Faire. Laissez Faire keeps government interaction to a minimal when the government attempts to be involved in private corporations. This lets oil companies manage their businesses how they like as long as they do not partake in illegal actions, even though those actions could be unethical. If it’s a national emergency, the government can completely ignore Laissez Faire and take control of the company.
Oil companies also argue back by saying that the government could not do their job any better than they could. That the price of oil could only get higher in the future to come and that the oil industry is too hard to control. This could possibly be very true since it’s known that the world’s supply of oil is dwindling and will only get smaller in the years to come. The real question though, is who we should trust with the last remnants of oil in the world?
The answer, however, is the government. Why should people leave the future in the hands of a few greedy oil companies that are run by even greedier CEO’s? The government was established by the people as a whole and will always serve the people. Big Businesses were all individually made by one man who was looking to make money. This is why people need to trust the government with their future, rather than the oil companies. Nationalizing the oil companies would be no different than nationalizing any other company, like AIG. Companies sometimes need to be nationalized for their own good just like AIG had to be. AIG is a large international insurance company that was too big to fail. Oil companies are the same way, and now its they’re time to be nationalized for the good of the people.
Government takeover of oil prices is also supported by British Prime Minister Brown and French President Sarkozy. [They quote, “wild price swings defy the accepted rules of economics.” They believe governments, “can no longer stand idle” and must take action by lowering oil prices after the oil is bought and imported into the country.](Yarow 772) This tactic would not be beneficial to the government itself but would instead help the citizens of the country. [Their goal is to attempt to control the swings in prices by increasing communication between the government and the oil companies. With increased communication agreements can be made, and oil companies can buy their oil for less so the price at the pump would be less.](Yarow 772) This is a plan that is strongly backed up by the public, and it puts pressure on unfair oil companies.
[Another reason that the government should not be involved is because they already make a profit from the tax they put on gas at the pump. The government greatly benefits from this tax and could not afford to lower it even though it increases the price of gasoline greatly.](abcnews.go.com) This partially reveals that the government is more concerned about its own money issues than the common American driver who commutes to work. So the government might not be the answer if they prove to be selfish when it comes to profiting from oil; but the government is also the only option if not the oil companies. The government could also be more reasonable if put under pressure from the people, but this cannot be seen unless the government is given a chance.
In conclusion the main issue is the inconsistent prices of the complicated oil market. It’s not something that can be easily controlled, but oil companies have proven that they cannot handle this; but can the government do any better? If the government can be more wary of the average American who pays for gasoline once a week, then maybe they will be much more helpful than the oil companies. This cannot be tested yet though; unless the government takes action. To take action the government would have to overcome many challenges ahead, one of these challenges being Laissez Faire. If these challenges cannot be overcome, then the people of the United States could be looking at a bleak future in which there will be record high gas prices. However, if the government takes action they should certainly be more trust worthy than the oil companies. One fact both sides can agree on, is that this argument is surely one of the most controversial arguments today in modern America.
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