Saturday, February 16, 2013

Good For Dow But Not For America


It used to be said that what's good for General Motors is good for America. It was a metaphor that meant to convey the notion: what's good for any American business is good for America. In turn, that notion was supported by another saying that went this way: The business of America is business. Thus, the image that emerged from all this was that of an America so interlinked with business, the two are one and the same, and cannot be separated.

But something happened lately that revealed there was another side to the story. What has emerged is a story whose consequence could not be ignored even by the likes of the Wall Street Journal. It is that the revelation has caused a profound change in the way that the Journal now perceives the relationship which exists between business and the state. It is a reality that has proven to go contrary to the situation which the Journal thought existed; the one it thought was going to remain intact and last forever.

To be sure, the Journal is not advocating a paradigm shift with regard to the way that business ought to conduct itself. On the contrary, it wants business to adopt the ideal precepts it believes were good for business and for America in the past, and would still be good now and in the future. What happened to the Journal, in fact, was that it discovered the truth about business not always following those precepts because if it did, America would not have prospered the way that it has up to now.

With this truth out in the open, the Journal now finds itself in the awkward position of having to choose between one of two alternatives, each being as hard to swallow as the other. It is that the Journal will have to soften its stand with regard to the idea of the state regulating business, or will have to be satisfied with calling the current situation embarrassing, and hope that this will cause business to see the light and change its ways. But even then – change to what if the revelation has shown that the ideal precepts were never embraced in the past, and would ruin America if embraced today?

You get a sense of all that, and you gain more insight when you read the Journal's editorial that was published on February 15, 2013. It had the title: “Business Against Exports” and the subtitle: “The self-interested campaign to bar LNG sales abroad.” As you can see, when words such as these are lined-up in a row, they can only be thought of as oddities standing out to say something. In this case, they tell of the profound change that has taken place in the way that the Wall Street Journal now perceives reality.

Never before was the self-interest of business mentioned negatively by someone at that publication. And never before was the word “bar” used to describe what business was doing. It used to be that self-interest was thought to serve the interest of everyone, and it used to be that business did not launch a campaign to bar something; it only suggested an alternative course to the one taken currently.

And that's not all because the first words of the editorial's first paragraph hit you on the head like a two-by-four: “Everyone loves American exports, or at least claims to,” they shout. Upon reading this, the first thing that we, as readers do, is assume the word “everyone” to include all the people and all the businesses. But the Journal warns that someone out there does not love export while claiming that they do. Who could that be, you ask? And the editorial tells who it is: “it's worth highlighting the big business lobbying underway to limit the export of U.S. natural gas.” Whoa! Can you believe this? Can you believe that the Wall Street Journal is pointing an accusatory finger at big business? That's big business, my friend, not just any business.

Not only that, but the Journal goes on to describe big business as being destructively hypocritical without using these words. This is how it does it: “Couched in the usual language about 'energy security' and domestic jobs, the effort is as pure a special-interest play as you'll find.” Here again, the words lining up as they do, point to the change that has taken place in the perception of the Wall Street Journal with regard to the way that business is conducted in America.

And the editors give an example of that; one that has stirred their bile no doubt. Citing Dow Chemical, Nucor and Alcoa who lobby under the banner “America's Energy Advantage,” the Journal says the following: “these companies want the Obama Administration to limit or block exports of liquified natural gas [LNG].” Why do they do that, you ask? And the editors tell you that these companies “use [the gas] as feedstock and to power their plants.” Thus, what they do wrong is that they “trash exporters for putting a 'quick buck' ahead of U.S. manufacturing jobs.”

But why is that so bad, you ask? Because it is hypocritical, they say. They go on to explain that when U.S. gas prices were climbing in the year 2000, Dow relocated its manufacturing to the Middle East and Asia. But now that the price of gas is coming down in America, Dow has rededicated itself to manufacturing in America. However, it wants to maintain the price of gas down, so it seeks to block its sale abroad. And to the editors of the Journal, this proves that: “Dow's lobbying secret is that it supports LNG exports when it suits its bottom line.” Which, to their ears “Sounds like a quick buck.”

Knowing something about those writing these words, you shout to yourself: I'm astounded because this is what the Journal used to say was good about American business. It used to be that what was good for business was good for America no matter what the businesses chose to do. And so you ask: What happened to that principle? Surprisingly, the Journal responds by lamenting that the Vice President of Dow said the company was pro-free-trade but that it was looking for the sweet spot in the export market. And this is what made the editors whine: “He means sweet for Dow but sour for everyone else.” Bang! You feel it right there on your head. Get this, my friend; the editors of the Wall Street Journal are shamelessly using the collective “everyone else.” Are they turning socialist or something?

In fact, they seem to have gone banana because they are now advising their readers to remember something. Believe it or not, this is what they wrote: “Remember what Lenin said about businessmen and the rope to hang themselves.” So then, are we to believe that the Journal wants the businessmen to think not in terms of what is good for their shareholders but what is good for the country? If so, why did they go on to say this: “The last thing American business needs is politicians deciding when and where companies can sell their goods.”

And so you ask: Who is better at looking after the interests of the country: the businessmen or the politicians? You look for an answer in the editorial and find none. But you find something weird. It seems that the editors are saying none of these people are good enough to make this sort of decision, even though it is their job; even though it is what they get paid to do.

And because they are not good enough to do the job, the Journal will tell them what to do. It does so at the end of the piece with the following advice: “Dow and friends would do more good for themselves and U.S. job creation by lobbying Mr. Obama to stop … trying to regulate … drilling to death. Their plea for government limits on export is … embarrassing.”

What? Have these people come full circle to now ask for what they have been rejecting? All along, they have been making the point that when business is left to itself to pursue its interests, it can hurt the business of the nation. This being code words to mean that in some cases, regulation is called for, you ask why are they urging business to go tell the President to stop regulating what they say has gone wrong?

Maybe when they went banana, they ate all the bananas and got hungry again. Let's throw them a few more bananas and see if they'll get back to their senses.