Oil crisis: capitalist anarchy
(editorial)
The astronomical rise in the cost of gasoline, diesel fuel, home heating oil, natural gas, and other energy sources, which has sparked protests throughout Europe and is hitting other countries around the world, is a graphic illustration of how capitalism works at this late stage of its development, which is monopoly capitalism.
This crisis, which is already devastating the livelihoods of working farmers, fishermen, and independent truckers--those who have led the protests--is also starting to pose a threat to tens of millions that will not be able to afford heat this winter.
The skyrocketing price of oil is not a case of something going awry with capitalism. It's what capitalism is all about. And it shows the anarchic and irrational character of this system--from the point of view of working people.
Rather than harness and distribute in an equitable manner the resources of the earth through the creative application of highly productive human labor that is possible at this stage of development of human society, the blind laws of monopoly capitalism and the profit drive of the employers act as a brake on the progress of humanity. At times of deeper crisis they lead toward destruction--through war and economic aggression--of entire countries, tens of millions of human beings, and productive forces.
When workers demand wage increases to meet their needs, bosses often cry, "You'll cause inflation and push prices up!" To demands to raise the minimum wage, even just to a bare "living wage," the capitalists and their politicians protest that businesses will be driven under by "high labor costs." These are, of course, untruths designed to justify the employers' efforts to expand their profits on the backs of working people.
Today, the politicians of the Democratic and Republican parties in the United States, and their cohorts in Europe, delicately avoid directing a simple question to the energy giants: Why the sudden price rise? Did you just sign a contract with oil workers raising their wages fivefold? (We thought you have been trying to break the unions and enforce speedup!) Why, mighty barons of Exxon-Mobil, have your profits soared to $4.5 billion in the second quarter of 2000 alone? (A nice jump from $1.9 billion in the second quarter of 1999.) No, the question is never asked! They dare not challenge the prerogatives of big capital.
The answer, of course, is no mystery. There is plenty of oil and natural gas reserves in the world. But the capitalist monopolies in the imperialist countries control a big percentage of the production, processing, and transportation of oil, gas, and coal, either directly or through their broader control of industry and banking. Nations with vast oil reserves that do not do the bidding of the imperialist masters often face sanctions, blockades, or war, such as the U.S.-led aggression unleashed against the peoples of Iran, Iraq, and Libya over the past two decades.
With the current expansion in the world economy, the oil giants are using their monopoly position to reap superprofits as fuel demand increases. The effects of the fuel price hikes on the lives of the vast majority of humanity are of no concern to them. Even big-business dailies such as the Financial Times of London have begun to worry about the broad impact of the huge price increases on economic growth in a number of European capitalist countries. Actions of unprecedented scope by thousands of independent truckers, small farmers, fishermen, and other working people across the continent have demanded immediate relief from steep government taxes. Many of the social-democratic governments there were caught unaware and have been shaken, especially the Labour Party administration of Anthony Blair in the United Kingdom.
The oil magnates offer no apologies or explanation for this desperate situation. Instead, they promote scapegoating of Mideast nations in the Organization of Petroleum Exporting Countries, which the capitalist media falsely portrays as the culprits. This is a blatant lie--especially for the United States, where a majority of imports are from non-OPEC countries, never mind the huge production of crude oil and vast refining capacities in the United States itself.
Through mergers and acquisitions, three large private companies alone--Exxon-Mobil, BP-Amoco-Arco, and Royal Dutch/Shell--control at least 10 percent of the world crude oil production. After the big three, the next 15 largest publicly traded capitalist oil companies control another 9 percent of production.
One energy source that is not purchased much directly by individual working people is coal. But there is growing demand for coal as well, especially for electrical generation. The United States has vast coal reserves, but, again, the profit drive means this resource is underutilized. First, the bosses face the United Mine Workers of America union, which is a thorn in their side in carrying through a full-scale assault to intensify labor, gut hard-won health and safety measures, and cut wages. Secondly, the energy giants don't want to pay for "scrubbers" on electrical generation plants that make it possible to burn coal cleanly, without harmful emissions. A revival of coal production--done by UMWA members under safe working conditions and turned into electricity through environmentally sound methods--would provide both jobs and low-cost energy to millions.
The labor movement can join with truck drivers in their protests at U.S. ports October 4 to demand relief from exorbitant prices. Unions should demand the government expand the tapping of its strategic oil reserves and provide fuel, heating oil, natural gas, electricity, to any working person who faces hardship due to the greed of the oil companies. Every tax on fuel and other sales taxes--regressive measures that hit working people disproportionately--should be eliminated now. As a fight for these measures is mounted, more far-reaching actions to put the needs of working people before the profits and prerogatives of the capitalists can be pressed on the government.
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