This week mega giant corporation BP were among a number of UK oil companies caught up price fixing of petrol prices at the pump. Of course that this is going on should come as little surprise to those watching energy prices. For quite awhile its been obvious how any increase in oil or gas prices results in a rapid near lock step increase in prices from the energy companies. Yet when wholesale gas or crude oil prices fall, they tend to be relatively slow to pass on these savings to customers.
Now this would be just plain annoying any other time. But then we have today the appeal for help from BP to Cameron with regard to the rising cost of compensation for the Deep water Horizon Spill. My response to this is to tell them to sod off.
If there’s one thing that annoys me about capitalism its how those who claim to support it are so quick to ignore its most basic principles. In a capitalist system there are winners and losers. Companies who do silly idiotic things that impact on other people’s business (such as using substandard oil drilling equipment) get the ass sued off them. Those that break the law see exec’s sent to jail. This serves as a future deterrent to them and other companies.
Instead what many plutocrats seem to favour is excessive reward for reckless risk taking (regardless of whether the risk pays off or not) without having to deal the consequences when things go wrong. Heads they win, tails we lose. In short what they favour isn’t capitalism, but feudalism.