Pelosi: At-risk Dems back drilling

California Democrat Nancy Pelosi may be trying to save the planet — but the rank and file in her party increasingly are just trying to save their political hides when it comes to gas prices as Republicans apply more and more rhetorical muscle.

But what looks like intraparty tension on the surface is part of an intentional strategy in which Pelosi takes the heat on energy policy, while behind the scenes she’s encouraging vulnerable Democrats to express their independence if it helps them politically, according to Democratic aides on and off Capitol Hill.

Pelosi’s gambit rests on one big assumption: that Democrats will own Washington after the election and will be able to craft a sweeping energy policy that is heavy on conservation and fuel alternatives while allowing for some new oil drilling. Democrats see no need to make major concessions on energy policy with a party poised to lose seats in both chambers in just three months — even if recess-averse Republicans continue to pound away on the issue.

“The reality is we will have a new president in three months, and what Bush and the Republicans are trying to do amounts to a land grab for the oil companies,” said one senior House Democratic aide involved with party strategy. “I don’t think we have to give in at all pre-election — we have many more options postelection.”

It’s a reality that Rep. Nick J. Rahall (D-W.Va.) personally delivered to President Bush recently.

Rahall spent more than an hour last week talking to the president about energy. Bush spent the entire flight aboard Air Force One, and much of a subsequent limousine ride, grilling the West Virginia Democrat about legislative solutions to the high price of gasoline, Rahall said last week.

“No,” Rahall replied in a short interview with Politico. “He’s realistic about it.”

Asked if Congress will produce a comprehensive energy bill in September before Congress adjourns again for elections, Rahall replied, “This year? No.”

Instead, the chairman of the House Committee on Natural Resources believes Democrats are all about 2009.

Democratic House aides say the energy agenda has been carefully gamed out in strategy sessions, and Pelosi always intended to take heat on gas prices while tacitly encouraging more vulnerable Democrats to publicly disagree with her and show their independence.

Freshman Democrats like Jason Altmire of Pennsylvania and Don Cazayoux of Louisiana have taken her up on the offer.

Altmire has said a drilling vote “will happen,” while Cazayoux, hoping to hang on to his seat in a conservative Baton Rouge-area district, on Friday sent a letter to Majority Leader Steny H. Hoyer (D-Md.) demanding a vote on more domestic oil exploration.

“There will be a vote,” said Altmire, who faces a rematch with former GOP Rep. Melissa Hart this fall in the Pittsburgh suburbs.

Indeed, Congress must vote before Sept. 30 to renew the annual moratorium; otherwise, it will lapse on its own, giving states the right to decide whether private companies can search for potential drilling sites three miles offshore. .

“My view is that if we have a vote, let’s make it a rational policy,” said Altmire, whose district includes viable coal and nuclear industries. “We can’t let Republicans hold this issue hostage because of one vote.”

Cazayoux, in his letter, says “the current debate seems to be bogged down in partisan one-upmanship.”

To some extent, House Republicans seem to be playing right along with the strategy, taking Pelosi’s name in vain dozens of times during their rebel House sessions over the past few days and making her the villain who won’t allow oil drilling votes.

“It’s grossly unfair to the Democrats who want a vote,” said Rep. Louie Gohmert (R-Texas). “[Pelosi] needs to cut that out.”

The Senate has also gone with a run-out-the-clock strategy, with Majority Leader Harry Reid (D-Nev.) calling for a bipartisan energy summit but promising no major energy votes. Reid embraced the drilling and conservation proposals of the bipartisan Senate “Gang of 10” last week, but he made further commitment on the energy debate.

Reid, like Pelosi, is expecting to have a much stronger governing majority in the Senate next year, so he has little incentive to give in to Republicans on energy policy as long as he thinks it won’t hurt Democrats.

Even as they face heat from constituents during the August break, Democrats say they aren’t going to cave in to popular pressure.

“We feel pretty comfortable with where we are,” said Rep. Michael E. Capuano (D-Mass.), who is close to the Democratic leadership. “This is a not a new issue. This just didn’t happen today. We’ve been working on this for months.”

Democratic insiders said that Pelosi and other party leaders were “not rattled” by the GOP floor rebellion, and at this point, it’s not clear if the Democrats will even pay a price on energy. State-level polling conducted by Democrats suggests that voters still view President Bush and the GOP as the incumbent power in Washington, and Democratic strategists believe any anti-incumbent wave would hurt Republicans more than Democrats.

Rep. Jeb Hensarling of Texas, one of the leaders of the rogue GOP House session, said he realizes that Democrats are “in a four-corners stall right now,” and admits that “it gets more challenging” for Republicans if they lose more seats in Congress.

Democrats are also comforted somewhat by the fact that crude oil prices have gone down more than 10 percent from their summer highs, and if the U.S. economy enters a recession, prices may fall further due to slackening demand.

“There is no crisis on our side of the aisle,” a top House Democratic leadership aide said. “We have a plan, and we will stick to it.”

Why the Democrats are against the US drilling for our own oil.

Read this and I think you will agree the oil industry has already been Nationalized in the US;

It was common in those days, as it is in ours, to identify the Communists as leftist and the Nazis as rightists, as if they stood on opposite ends of the ideological spectrum. But Mises knew differently. They both sported the same ideological pedigree of socialism. “The German and Russian systems of socialism have in common the fact that the government has full control of the means of production. It decides what shall be produced and how. It allots to each individual a share of consumer’s goods for his consumption.”

The difference between the systems, wrote Mises, is that the German pattern “maintains private ownership of the means of production and keeps the appearance of ordinary prices, wages, and markets.” But in fact the government directs production decisions, curbs entrepreneurship and the labor market, and determines wages and interest rates by central authority. “Market exchange,” says Mises, “is only a sham.”

Mises’s account is confirmed by a remarkable book that appeared in 1939, published by Vanguard Press in New York City (and unfortunately out of print today). It is The Vampire Economy: Doing Business Under Fascism by Guenter Reimann, then a 35-year old German writer. Through contacts with German business owners, Reimann documented how the “monster machine” of the Nazis crushed the autonomy of the private sector through onerous regulations, harsh inspections, and the threat of confiscatory fines for petty offenses.

“Industrialists were visited by state auditors who had strict orders to examine the balance sheets and all bookkeeping entries of the company or individual businessman for the preceding two, three or more years until some error or false entry was found,” explains Reimann. “The slightest formal mistake was punished with tremendous penalties. A fine of millions of marks was imposed for a single bookkeeping error.”

Reimann quotes from a businessman’s letter: “You have no idea how far state control goes and how much power the Nazi representatives have over our work. The worst of it is that they are so ignorant. These Nazi radicals think of nothing except ‘distributing the wealth.’ Some businessmen have even started studying Marxist theories, so that they will have a better understanding of the present economic system.

“While state representatives are busily engaged in investigating and interfering, our agents and salesmen are handicapped because they never know whether or not a sale at a higher price will mean denunciation as a ‘profiteer’ or ‘saboteur,’ followed by a prison sentence. You cannot imagine how taxation has increased. Yet everyone is afraid to complain. Everywhere there is a growing undercurrent of bitterness. Everyone has his doubts about the system, unless he is very young, very stupid, or is bound to it by the privileges he enjoys.

“There are terrible times coming. If only I had succeeded in smuggling out $10,000 or even $5,000, I would leave Germany with my family. Business friends of mine are convinced that it will be the turn of the ‘white Jews’ (which means us, Aryan businessmen) after the Jews have been expropriated. The difference between this and the Russian system is much less than you think, despite the fact that we are still independent businessmen.”

As Mises says, “independent” only in a decorous sense. Under fascism, explains this businessman, the capitalist “must be servile to the representatives of the state” and “must not insist on rights, and must not behave as if his private property rights were still sacred.” It’s the businessman, characteristically independent, who is “most likely to get into trouble with the Gestapo for having grumbled incautiously.”

“Of all businessmen, the small shopkeeper is the one most under control and most at the mercy of the party,” recounts Reimann. “The party man, whose good will he must have, does not live in faraway Berlin; he lives right next door or right around the corner. This local Hitler gets a report every day on what is discussed in Herr Schultz’s bakery and Herr Schmidt’s butcher shop. He would regard these men as ‘enemies of the state’ if they complained too much. That would mean, at the very least, the cutting of their quota of scarce and hence highly desirable goods, and it might mean the loss of their business licenses. Small shopkeepers and artisans are not to grumble.”

“Officials, trained only to obey orders, have neither the desire, the equipment, nor the vision to modify rules to suit individual situations,” Reimann explains. “The state bureaucrats, therefore, apply these laws rigidly and mechanically, without regard for the vital interests of essential parts of the national economy. Their only incentive to modify the letter of the law is in bribes from businessmen, who for their part use bribery as their only means of obtaining relief from a rigidity which they find crippling.”

Says another businessman: “Each business move has become very complicated and is full of legal traps which the average businessman cannot determine because there are so many new decrees. All of us in business are constantly in fear of being penalized for the violation of some decree or law.”

Business owners, explains another entrepreneur, cannot exist without a “collaborator,” i.e., a “lawyer” with good contacts in the Nazi bureaucracy, one who “knows exactly how far you can circumvent the law.” Nazi officials, explains Reimann, “obtain money for themselves by merely taking it from capitalists who have funds available with which to purchase influence and protection,” paying for their protection “as did the helpless peasants of feudal days.”

“It has gotten to the point where I cannot talk even in my own factory,” laments a factory owner. “Accidentally, one of the workers overheard me grumbling about some new bureaucratic regulation and he immediately denounced me to the party and the Labor Front office.”

Reports another factory owner: “The greater part of the week I don’t see my factory at all. All this time I spend in visiting dozens of government commissions and offices in order to get raw materials I need. Then there are various tax problems to settle and I must have continual conferences and negotiations with the Price Commission. It sometimes seems as if I do nothing but that, and everywhere I go there are more leaders, party secretaries, and commissars to see.”

In this totalitarian paradigm, a businessman, declares a Nazi decree, “practices his functions primarily as a representative of the State, only secondarily for his own sake.” Complain, warns a Nazi directive, and “we shall take away the freedom still left you.”

In 1933, six years before Reimann’s book, Victor Klemperer, a Jewish academic in Dresden, made the following entry in his diary on February 21: “It is a disgrace that gets worse with every day that passes. And there’s not a sound from anyone. Everyone’s keeping his head down.”

It is impossible to escape the parallels between Guenter Reimann’s account of doing business under the Nazis and the “compassionate,” “responsible,” and regulated “capitalism” of today’s U.S. economy today. At least the German government was frank enough to give the right name to its system of economic control.

Here is the link for this article:

http://mises.org/story/47

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