Republicans calling $20 Billion in an escrow fund for those suffering losses due to the leak a Chicago Style Shakedown.
“We all agree that BP should be held fully responsible for its complicity in the oil tragedy in the Gulf,” said Chairman Price. “In fact, BP has already begun paying claims. Any attempt by the company to sidestep that responsibility should be met with the strongest legal recourses available. However, in an administration that appears not to respect fundamental American principles, it is important to note that there is no legal authority for the President to compel a private company to set up or contribute to an escrow account.
“BP’s reported willingness to go along with the White House’s new fund suggests that the Obama Administration is hard at work exerting its brand of Chicago-style shakedown politics. These actions are emblematic of a politicization of our economy that has been borne out of this Administration’s drive for greater power and control. It is the same mentality that believes an economic crisis or an environmental disaster is the best opportunity to pursue a failed liberal agenda. The American people know much better.”
Bachman went further
“They have to lift the liability cap. But if I was the head of BP, I would let the signal get out there — ‘We’re not going to be chumps, and we’re not going to be fleeced.’ And .
they shouldn’t be. They shouldn’t have to be fleeced and make chumps to have to pay for perpetual unemployment and all the rest — they’ve got to be legitimate claims.”
.
These are the two best examples of the modern GOP being pro big business instead of pro-market economy. There was a way to avoid paying into the escrow fund–follow proper procedures and safety regulations. Instead they got a massive oil spill. It should hurt BP and deeply for two reasons:
1) They caused the problem and it’s their responsibility
2) If they aren’t hurt, the consequences for not following the law and safety regulations oil spills become nothing but a small cost of doing business.
We are dealing with common public goods in the water of the gulf. That entails a common property right to all those states and communities along the gulf to the many resources of the gulf. Any damage to that public good is subject to paying compensation by the responsible party. We have complicated laws and rules to govern that, but the principle itself is at the center of a market economy and is simple to understand and is fair. All the escrow fund does is create a third party to objectively distribute the money. Anyone who thinks the costs will stop at $20 Billion is sadly deluded.
The other option is let the trial lawyers figure it out? Do the Republicans really want to do that? I didn’t think so.
Siding with BP or speeding up the process by which those who are harmed by BP’s leak receive compensation is common sense and fair. However, if the GOP wants to run on that–go right ahead.
ArchPundit