Post-Exxon Valdez legislation makes companies liable for the damages from oil spills, but caps the liability at 75 million dollars–in the end, rather a paltry sum that then passes the rest of the bill on to taxpayers. Proposals are afoot to raise that amount. John Cole disagrees with that increase:
Here’s a revolutionary idea- why don’t we get rid of the limit altogether! If BP or Exxon cuts corners and makes a hash of things, and they cause 60 billion dollars worth of damage, they are on the hook for the whole 60 billion dollars! And if they can’t pay for the whole bill, the company is liquidated, the shareholders get wiped out, and the company ceases to exist.
Why don’t we give that a shot? And don’t tell me it is because no one will then undertake oil drilling. Of course they will! They’ll just pass on the costs to the consumer. And should being really careful and safe cost too much money, then it might just make other forms of energy look cheaper by comparison, and spur investment in those energy types.
So how about it? No more immunity, no more corporate welfare, no more subsidizing industries that don’t even pay a damned penny in taxes in the US anymore. Exxon had billions in profit last year, and paid not one penny in taxes. I’d bet BP is in the same boat or close to it, so why should they make tons of money and force us to pay for their mistakes, especially when their mistakes were likely caused by attempts to make more money and underpay for the safety of their well.
We’ll just have to make our corporate persons pull themselves up by their bootstraps. It’s the American way, after all.
