Are you angry, dissatisfied and concerned enough to actually do something right now about Washington politicians who are incapable of governing our United States of America?
We the People have political power through economic power. Seventy per cent of our economy is based on what we buy as consumers.
Money is apparently the native language in the land of Washington politics. If we talk and act in terms of money, we can influence Washington for the benefit of our country. But we have to act together
.
What should we do? Buy New Balance shoes. Do not buy gas from Exxon Mobil, aka Exxon, Mobil and Esso. These actions should begin immediately and continue through December 31, 2011.
What is our message? Put Country First! If Washington politicians need further explanation, then they should hear this: Put country before party. Put country before lobbyists. Put country before campaign contributions. And put country put before ideologies.
Why buy shoes from New Balance?
New Balance is the only and last manufacturer of athletic shoes in our country. Their management has made a commitment to U.S. workers. They could make more money by moving all their manufacturing offshore. But instead they choose to employ a 1000 Americans in America [1]. We can reward their commitment and courage. We must show Washington politicians how we are prepared to protect and create American jobs even if they aren’t. And we need to tell Nike and other American manufacturers that they should return the jobs they moved offshore back to the U.S. So buy a pair of New Balance athletic shoes between now and December 31, 2011, and buy American for America.
Why not buy gas from Exxon Mobil?
Our country is significantly in debt and can no longer afford to provide annual subsidies of nearly $4B to the very profitable oil industry. The oil industry uses its financial power to “buy” enough Washington politicians so that the House and Senate will not discontinue these subsidies. Exxon Mobil is the largest and most profitable oil company. Not buying gas from Exxon Mobil will send a message to Washington politicians that we want these subsidies stopped now.
In the past 5 years the top oil companies in Fortune’s annual ranking had $350B in profits. In the same five years Exxon Mobil had $175B in profits. In fact, according to Fortune, Exxon Mobil has been the most profitable company in its overall annual ranking for the last 8 years [2]. In 2011, Exxon Mobil’s profits have increased 41 per cent from $7.6B in Q2 2010 to $10.7B in Q2 2011 [3].
The oil industry uses its profitability to “buy” Washington politicians for its continual financial advantage. Since 1998, oil and gas companies have spent $1 billion on lobbying related activities [4]. In 2010 Exxon Mobil spent $27M lobbying congress and another $3.3M through May of this year [5].
An important example of the success of the oil industry in “buying” senators occurred this May when an effort to repeal some but not all of the oil industry subsidies failed in the U.S. Senate. Those “bought” senators who voted with the oil industry have received over $21 million in career oil contributions. The senators who voted against the oil industry received only $5.4 million in career contributions. The net result is that those senators who supported the oil industry have received 5 times as much career oil money donations as those who opposed the industry [4].
Unless something changes, the oil industry will receive about $44B in subsidies over the next 10 years.
We the People should ask this reasonable question. Is $44B in subsidies to the highly profitable oil industry a priority for our country now? A reasonable answer is no.
We the People should also ask this reasonable question. Would we pay less at the pump if the oil industry did not spend so much money on lobbying, political contributions and all related activities? A reasonable answer is yes.
One cent in the price of gas equals about $600M of our consumer disposable income [6]. If the oil industry would find ways to reduce the price of gas by just one cent, an additional $600M would be available for our economy in this serious recession. Two cents would be an additional $1.2B for us to spend on food, housing and other essentials!
Suppose enough Americans decide to not buy gas from Exxon Mobil and there is an impact on its October-December sales and earnings. What is Exxon Mobil likely to do? Put its marketing spin machine on high speed in an attempt to convince us that not buying their gas for 90 days is unfair and inappropriate.
This is what their spin machine had to say in the past when wind fall profit taxes or elimination of subsidies have been considered in Washington and what it is likely to spin now.
The spin: The oil industry employs millions of Americans and provides income for retirees who invested in the oil industry. The reality: Yes, but this has nothing to do with whether the highly profitable oil industry should receive $44B in subsidies over the next 10 years.
The spin: “We already are probably the most heavily taxed industry in this country”, which is quote from Exxon Mobil CEO Rex Tillerson on CNBC in May 2010. The reality: They pay taxes like other companies. Forbes, who believes the subsidies should end, does acknowledge that the oil industry pays higher federal taxes than other industries [7]. CNN Money, however, points out that during the first three months of 2011 when efforts were underway in Washington to end oil subsidies, Exxon Mobil said it paid $3.1B in taxes in the US which is more than the $2.6B it made in profits selling oil and gas. How? Because Exxon Mobil chose in that spin to include federal and state gasoline taxes the company collects from drivers but which it passes on the government. It also included the payroll taxes Exxon Mobil pays on behalf of its employees [8]. Why the need for such inappropriate exaggeration? Perhaps to undermine American Progress, who has looked at the taxes paid by Exxon Mobil and concluded that the company’s effective tax rate is only 17.6 percent, which is below the average individual federal tax rate of 20.4 percent [9]. This would mean that Exxon Mobil pays less in taxes than We the People!
The spin: Exxon Mobil uses oil subsidies for investments in clean and renewable energy. The reality: Exxon Mobil is only an oil business. The Center for American Progress points out that in 2008 when Exxon Mobil had $45B in net income, it invested less that 1 percent in renewable energy. That was the least in percent and absolute dollars in the oil industry, which only invested about 4 percent of its 2008 profits in renewable or alternative energies [10].
The spin: Exxon Mobil may have to lay off employees if enough Americans do not buy their gas. The reality: The focus of our efforts will last for only 90 days. Exxon Mobil’s industry leading levels of profitability should enable it to absorb the financial impact of our actions. We should also understand that it has the option of reducing pay for its executives before laying off employees. Consider that in 2010 just the top 5 executives of Exxon Mobil received $16.2M in salaries and bonuses as well as $39.8M in stock awards [11]. They have this choice: Put employees before shareholders or put shareholders before employees.
We the People can put country first by using our economic power as political power. We should buy New Balance athletic shoes and not buy gas at Exxon, Mobil and Esso between now and December 31st. Both of which are legal, peaceful and will involve little if any sacrifice by us.
These two actions will make this clear to Washington: 1) Americans needs jobs in America now; and 2) Discontinue $44B in subsidies to the highly profitable oil industry over the next 10 years as part of our national debt reduction.
Do We the People put our country first and take these actions through our commitment, determination and courage? Or do we do nothing because of our cynicism, complacency and indifference and let Washington politicians put party, lobbyists and ideologies before country?
To use the language of Main Street, U.S.A., we need to get pissed off and legally and peacefully show these god damn Washington politicians that we’ve had enough of their bullshit.
Send this to everyone you know using every means possible and let them decide for themselves whether they will buy New Balance shoes and not buy gas from Exxon, Mobil and Esso between now and December 31st.
This post was originally posted at Technorati.
Email: jlfrogno@gmail.com
Twitter: http://twitter.com/frogno
Reference Links:
[1] http://www.washingtonpost.com/business/economy/new-balance-struggles-as-sole-remaining-major-us-athletic-shoe-manufacturer/2011/07/22/gIQAZsq9eI_story.html
[2] http://money.cnn.com/magazines/fortune/fortune500/2011/index.html
[3] http://checksandbalancesproject.org/2011/08/03/the-market-has-spoken-it%E2%80%99s-time-to-end-big-oil-subsidies/
[4] http://www.huffingtonpost.com/2011/05/18/oil-subsidies-vote-fails_n_863734.html
[5] http://thinkprogress.org/romm/2010/05/11/205973/exxon-ceo-oil-subsidies/
[6] http://investmentwatchblog.com/every-1-cent-increase-in-gasoline-decreases-u-s-consumer-disposable-income-by-about-600-million-per-year-the-move-in-oil-in-the-past-week-alone-has-almost-entirely-wiped-out-the-most-recent-stimulu/
[7] http://www.forbes.com/2011/05/02/eliminate-oil-subsidies.html
[8] http://money.cnn.com/2011/05/04/news/companies/exxon_oil_taxes/index.html
[9] http://www.americanprogress.org/issues/2011/05/tax_man.html
[10] http://www.americanprogress.org/issues/2009/03/big_oil_misers.html
[11] http://marketbrief.com/xom/def%2014a/definitive-proxy-statement/2011/4/13/7811937?secwatch
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