By doubting we come at truth.

- Marcus Tullius Cicero

Capitalists Against Barriers

Exxon is giving Lee Raymond one of the most generous retirement packages in history, nearly $400 million, including pension, stock options and other perks… [Read]

To suggest that if you are a true capitalist you must support Lee Raymond’s $400,000,000 retirement package is absurd. You could make a better argument that a true capitalist would be opposed to the retirement package, as it demonstrates that we are not involved in a true capitalist market.

In real capitalism, prices are driven down as competition is intense and requires efficiency. There is not an extra $400,000,000 lying around to throw at the guy exiting the building. In the beauty that is a capitalist market, competition is too fierce to waste money in this fashion. You may want to consider Lee Raymond is receiving $400,000,000 because of the incredible job he has done in helping to destroy competition in the oil industry.

Competition in the oil industry is diminishing. Refiners are in short supply, while demand is high and grows. Environmentalists, government, Exxon, have made it extremely difficult, if not nearly impossible for competitors to enter the market. When business does not have to worry about competition, the free-market, capitalism, is dead. The government does one thing well: erect barriers to entry.

Lee’s $400,000,000 is a great opportunity to all. It let’s capitalists see that the free-market does not exist in the oil industry; it lets conservatives see that their “conservative” government has done nothing to minimize government and reduce barriers to entry; and it allows environmentalists to see that their destruction of the market has only made their opponents wealthier — there is not this kind of excess in a free-market! — and more formidable foes.

Lee’s $400,000,000 is beautiful for true capitalists, as it lets all know capitalism has died in our land and we must consider if it can ever be found again with our growing government.

Capitalism is dead, long live freedom! Yeah, right…

posted at 09:30:11 on 04/21/06 by clearpolitics - Category: Economics - [Permalink]

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