HIGHLAND, UT | 23 June 2008 | Lenin and Stalin, Mussolini and Hitler; Mao, Minh, Castro, Chavez, the 2008 U.S. Presidential candidates and Congress! What do these characters all have in common? They all either have or would like to take private property and give it to “the people.” This sounds very good, does it not? “Power to the People!” they shout. Only, their “people” is not the same as the Founders “We, the people….” The Founders are surely spinning in their graves as they watch us, their posterity, go to war with one another over the question of private property ownership. Property ownership is a linchpin in the fight for freedom.

As Congressional Democrats and Republicans fight over the energy issue, private property has come to the forefront of the battle. Republicans want to open up ANWR and other home-front oil fields while Democrats want to preserve these areas and force oil companies into exploring alternative energy methods. Meanwhile, the windfall profits obtained by these companies is caught in the middle. For months now, members of Congress have hauled in the executives of these companies and forced them to justify their recent profits. They have threatened to raise taxes on oil-based products to rob these profits from them. And presidential candidates have overtly and blatantly disclosed in shrill voices that they want to “take those profits” and do with them what they think is more appropriate. This is nothing less than a classic property grab, reminiscent of Lenin, Stalin, Castro and others.

As late as last week, Congressional members announced they wish to nationalize the oil refinery industry because they think they can do a better job than those in the profession. Perhaps the Washingtonians should read Atlas Shrugged one more time before they make such a destructive blunder.

Key Points

• Oil refineries and profits are private property. They are owned by individuals and the corporations they formed in order to help protect those assets.
• Any attempted usurpation of these properties by the government amounts to legalized plunder.
• Profits validate a transaction, let the producer know that the value he created for the world was legitimate.
• If left in the hands of its rightful owner, properties may be employed to allow the producer to create more value. If seized by another, they go to someone other than who created the value and creates a false stewardship. If, for example, the profits of “Big Oil” go to others who attempt to create alternative fuels, these others will become dependent upon the false validation and will generally not produce value in the market place. And those to whom the property rightfully belongs, lose their drive to produce value because their self-interest is continually robbed from them.
• Value in the market place is indicated by actual exchange taking place.
• The Founders used the phrase “the people,” to identify the citizens of the United States; such as in the Preamble to the Constitution: “We the people of the United States…”
• “The people” has become a perverted phrase by Marxists and other socialists. They make the phrase sound really good, but the phrase really means that no one owns property, but it is controlled by the government.
• “The people” may act collectively, but they may not generally own property collectively. Ask yourself this question: If, as is Congressional Democrats’ desire, oil refineries can be nationalized and then owned and controlled, by “the people,” can you walk in to a fuel refinery plant and demand that the process be done in a certain way? Do you even have a say in how it will be refined, shipped, stored, sold, consumed? If the answer is no, then you begin to get a glimpse of who does not own that property.

Conclusion

If a government uses its strength to force one individual to illegitimately relinquish his property, that government then has the power to force any and all individuals to illegitimately relinquish all their properties. This ultimately leads to a Marxist-Leninist style of government. The history of the twentieth century is replete with many examples of nations that have seized property from producers. In Marxist theory, modeled by the Hegelian dialectic, this process begins with class struggle in which a consumer class grows weary of “exploitation” by a producer class. Throughout history, opportunists have manufactured these exploitative feelings in order to speed the process along. Similar signs are currently manifest in American politics, with candidates “screaming” about windfall profits and Big Oil taking advantage of the little guy. These manipulations are only damaging to our ability to follow correct principles, the only way to permanently solve this nation’s political maladies.

Many look at other countries around the world that have recently nationalized their oil refinery processes. They may tell the story of improved efficiency and higher production, but do not be fooled. “Mussolini got the trains running on time.” Hitler accomplished similar achievements. But efficiency accomplished immorally is still immorality. A fundamentally capitalist society often appears disheveled and chaotic. This is often disconcerting to many. This should, however, not be confused with the lack of efficiency. The Free Market is the best and only venue in which true, moral efficiency may be manifest.

Action Items

1. Read John Locke’s essay on property ownership in his Second Treatise on Government.
2. Review the governmental take over of Francisco’s copper mine in Ayn Rand’s Atlas Shrugged. What were the general attitudes of the those who acted for celebrated in that take over.
3. Write to your Representative in Congress expressing your opinions of even a hint at nationalizing the oil refineries in this country.

MRFC Principles: 13 (9, 11, 13)

Sources

Rep. Hinchey Steps Off Idea of Oil Refinery Nationalization,Foxnews.com, June 19, 2008.

House Dems Call to Nationalize Oil Industry, Stop the ACLU, June 18, 2008.

Hillary Clinton on Oil Profits,youtube.com, Originally aired on C-SPAN2.

Ayn Rand, Atlas Shrugged

John Locke, Second Treatise on Government, Chapter 5, “On Property.”