Payola for the Most Profitable Corporations in History
Along with “fivedollaragallongas,” the energy watchword for the next few months is: “subsidies.” Last week, for instance, New Jersey Senator Robert Menendez proposed ending some of the billions of dollars in handouts enjoyed by the fossil-fuel industry with a “Repeal Big Oil Tax Subsidies Act.” It was, in truth, nothing to write home about—a curiously skimpy bill that only targeted oil companies, and just the five richest of them at that. Left out were coal and natural gas, and you won’t be surprised to learn that even then it didn’t pass.
Still, President Obama is now calling for an end to oil subsidies at every stop on his early presidential-campaign-plus-fundraising blitz—even at those stops where he’s also promising to “drill everywhere.” And later this month Vermont Senator Bernie Sanders will introduce a much more comprehensive bill that tackles all fossil fuels and their purveyors (and has no chance whatsoever of passing this Congress).
Whether or not the bill passes, those subsidies are worth focusing on. After all, we’re talking at least $10 billion in freebies and, depending on what you count, possibly as much as $40 billion annually in freebie cash for an energy industry already making historic profits. If attacking them is a convenient way for the White House to deflect public anger over rising gas prices, it is also a perfect fit for the new worldview the Occupy movement has been teaching Americans. (Not to mention, if you think about it, the Tea Party focus on deficits.) So count on one thing: we’ll be hearing a lot more about them this year.
But there’s a problem: the very word “subsidies” makes American eyes glaze over. It sounds so boring, like something that has everything to do with finance and taxes and accounting, and nothing to do with you. Which is just the reaction that the energy giants are relying on: that it’s a subject profitable enough for them and dull enough for us that no one will really bother to challenge their perks, many of which date back decades.
By some estimates, getting rid of all the planet’s fossil-fuel subsidies could get us halfway to ending the threat of climate change. Many of those subsidies, however, take the form of cheap, subsidized gas in petro-states, often with impoverished populations—as in Nigeria, where popular protests forced the government to back down on a decision to cut such subsidies earlier this year. In the U.S., though, they’re simply straightforward presents to rich companies, gifts from the 99% to the 1%.
If due attention is to be paid, we have to figure out a language in which to talk about them that will make it clear just how loony our policy is.
Start this way: you subsidize something you want to encourage, something that might not happen if you didn’t support it financially. Think of something we heavily subsidize—education. We build schools, and give government loans and grants to college kids; for those of us who are parents, tuition will often be the last big subsidy we give the children we’ve raised. The theory is: young people don’t know enough yet. We need to give them a hand when it comes to further learning, so they’ll be a help to society in the future. From that analogy, here are five rules of the road that should be applied to the fossil-fuel industry.
1. Don’t subsidize those who already have plenty of cash on hand. No one would propose a government program of low-interest loans to send the richest kids in the country to college. (It’s true that schools may let them in more easily on the theory that their dads will build gymnasiums, but that’s a different story.) We assume that the wealthy will pay full freight. Similarly, we should assume that the fossil-fuel business, the most profitable industry on Earth, should pay its way, too. What possible reason is there for giving Exxon the odd billion in extra breaks? Year after year the company sets record for money-making—last year it managed to rake in a mere $41 billion in profit, just failing to break its own 2008 all-time mark of $45 billion.
2. Don’t subsidize people forever. If students need government loans to help them get bachelor’s degrees, that’s sound policy. But if they want loans to get their 11th BA, they should pay themselves. We learned how to burn coal 300 years ago. A subsidized fossil-fuel industry is the equivalent of a 19-year-old repeating third grade yet again.
3. Sometimes you’ll subsidize something for a sensible reason and it won’t work out. The government gave some of our money to a solar power company called Solyndra. Though it was small potatoes compared to what we hand over to the fossil-fuel industry, it still stung when they lost it. But since we’re in the process of figuring out how to perfect solar power and drive down its cost, it makes sense to subsidize it. Think of it as the equivalent of giving a high-school senior a scholarship to go to college. Most of the time that works out. But since I live in a college town, I can tell you that 20 percent of kids spend four years drinking: they’re human Solyndras. It’s not exactly a satisfying thing to see happen, but we don’t shut down the college as a result.
4. Don’t subsidize something you want less of. At this point, the greatest human challenge is to get off of fossil fuels. If we don’t do it soon, the climatologists tell us, our prospects as a civilization are grim indeed. So lending a significant helping hand to companies intent on driving us towards disaster is perverse. It’s like giving a fellowship to a graduate student who wants to pursue a thesis on “Strategies for Stimulating Donut Consumption Among Diabetics.”
5. Don’t give subsidies to people who have given you cash. Most of the men and women who vote in Congress each year to continue subsidies have taken campaign donations from big energy companies. In essence, they’ve been given small gifts by outfits to whom they then return large presents, using our money, not theirs. It’s a good strategy, if you’re an energy company—or maybe even a congressional representative eager to fund a reelection campaign. Oil Change International estimates that fossil-fuel companies get $59 back for every dollar they spend on donations and lobbying, a return on investment that makes Bernie Madoff look shabby. It’s no different from sending a college financial aid officer a hundred-dollar bill in the expectation that he’ll give your daughter a scholarship worth tens of thousands of dollars. Bribery is what it is. And there’s no chance it will yield the best energy policy or the best student body.
These five rules seem simple and straightforward to me, even if they don’t get at the biggest subsidy we give the fossil-fuel business: the right—alone among industries—to pour their waste into the atmosphere for free. And then there’s the small matter of the money we sink into the military might we must employ to guard the various places they suck oil from.
Simply getting rid of these direct payoffs would, however, be a start, a blow struck for, if nothing else, the idea that we’re not just being played for suckers and saps. This is the richest industry on Earth, a planet they’re helping wreck, and we’re paying them a bonus to do it.
In most schools outside of K Street, that’s an answer that would get a failing grade and we’d start calling subsidies by another name. Handouts, maybe. Freebies. Baksheesh. Payola. Or to use the president's formulation, "all of the above."
Bill McKibben is Schumann Distinguished Scholar at Middlebury College, founder of the global climate campaign 350.org, a TomDispatch regular, and the author, most recently, of Eaarth: Making a Life on a Tough New Planet.
Follow TomDispatch on Twitter @TomDispatch and join us on Facebook.
Copyright 2012 Bill McKibben
Cross-posted with permission from TomDispatch.com.
By Jessica Corbett
A leading environmental advocacy group marked Native American Heritage Month on Wednesday by urging President-elect Joe Biden, Vice President-elect Kamala Kamala Harris, and the entire incoming administration "to honor Indigenous sovereignty and immediately halt the Keystone XL, Dakota Access, and Line 3 pipelines."
- Climate Crisis: What We Can Learn From Indigenous Traditions ... ›
- 10 Organizations Honoring Native People on Thanksgiving ... ›
- Biden Vows to Ax Keystone XL if Elected - EcoWatch ›
EcoWatch Daily Newsletter
Returning the ‘Three Sisters’ – Corn, Beans and Squash – to Native American Farms Nourishes People, Land and Cultures
By Christina Gish Hill
Historians know that turkey and corn were part of the first Thanksgiving, when Wampanoag peoples shared a harvest meal with the pilgrims of Plymouth plantation in Massachusetts. And traditional Native American farming practices tell us that squash and beans likely were part of that 1621 dinner too.
Abundant Harvests<p>Historically, Native people throughout the Americas bred indigenous plant varieties specific to the growing conditions of their homelands. They selected seeds for many different traits, such as <a href="https://emergencemagazine.org/story/corn-tastes-better/" target="_blank" rel="noopener noreferrer">flavor, texture and color</a>.</p><p>Native growers knew that planting corn, beans, squash and sunflowers together produced mutual benefits. Corn stalks created a trellis for beans to climb, and beans' twining vines secured the corn in high winds. They also certainly observed that corn and bean plants growing together tended to be healthier than when raised separately. Today we know the reason: Bacteria living on bean plant roots pull nitrogen – an essential plant nutrient – from the air and <a href="http://www.tilthalliance.org/learn/resources-1/almanac/october/octobermngg" target="_blank" rel="noopener noreferrer">convert it to a form that both beans and corn can use</a>.</p><p>Squash plants contributed by shading the ground with their broad leaves, preventing weeds from growing and retaining water in the soil. Heritage squash varieties also had spines that discouraged deer and raccoons from visiting the garden for a snack. And sunflowers planted around the edges of the garden created a natural fence, protecting other plants from wind and animals and attracting pollinators.</p><p>Interplanting these agricultural sisters produced bountiful harvests that sustained large Native communities and <a href="http://dx.doi.org/10.1353/eam.2015.0016" target="_blank">spurred fruitful trade economies</a>. The first Europeans who reached the Americas were shocked at the abundant food crops they found. My research is exploring how, 200 years ago, Native American agriculturalists around the Great Lakes and along the Missouri and Red rivers fed fur traders with their diverse vegetable products.</p>
Displaced From the Land<p>As Euro-Americans settled permanently on the most fertile North American lands and acquired seeds that Native growers had carefully bred, they imposed policies that <a href="https://doi.org/10.1086/ahr/87.2.550" target="_blank">made Native farming practices impossible</a>. In 1830 President Andrew Jackson signed the <a href="https://guides.loc.gov/indian-removal-act" target="_blank">Indian Removal Act</a>, which made it official U.S. policy to force Native peoples from their home locations, pushing them onto subpar lands.</p><p>On reservations, U.S. government officials discouraged Native women from cultivating anything larger than small garden plots and pressured Native men to practice Euro-American style monoculture. Allotment policies assigned small plots to nuclear families, further limiting Native Americans' access to land and preventing them from using communal farming practices.</p><p>Native children were forced to attend boarding schools, where they had no opportunity to <a href="https://doi.org/10.5749/jamerindieduc.57.1.0145" target="_blank">learn Native agriculture techniques or preservation and preparation of Indigenous foods</a>. Instead they were forced to eat Western foods, turning their palates away from their traditional preferences. Taken together, these policies <a href="https://kansaspress.ku.edu/978-0-7006-0802-7.html" target="_blank" rel="noopener noreferrer">almost entirely eradicated three sisters agriculture</a> from Native communities in the Midwest by the 1930s.</p>
Reviving Native Agriculture<p>Today Native people all over the U.S. are working diligently to <a href="https://www.oupress.com/books/15107980/indigenous-food-sovereignty-in-the-united-sta" target="_blank" rel="noopener noreferrer">reclaim Indigenous varieties of corn, beans, squash, sunflowers and other crops</a>. This effort is important for many reasons.</p><p>Improving Native people's access to healthy, culturally appropriate foods will help lower rates of <a href="https://www.cdc.gov/vitalsigns/aian-diabetes/index.html" target="_blank">diabetes</a> and <a href="https://www.apa.org/pi/oema/resources/ethnicity-health/native-american/obesity" target="_blank">obesity</a>, which affect Native Americans at disproportionately high rates. Sharing traditional knowledge about agriculture is a way for elders to pass cultural information along to younger generations. Indigenous growing techniques also protect the lands that Native nations now inhabit, and can potentially benefit the wider ecosystems around them.</p>
By Jake Johnson
Amid reports that oil industry-friendly former Energy Secretary Ernest Moniz remains under consideration to return to his old post in the incoming Biden administration, a diverse coalition of environmental groups is mobilizing for an "all-out push" to keep Moniz away from the White House and demand a cabinet willing to boldly confront the corporations responsible for the climate emergency.
Anger, anxiety, overwhelm … climate change can evoke intense feelings.
- Your Guide to Talking With Kids of All Ages About Climate Change ... ›
- 7 of the Best Ted Talks About Climate Change - EcoWatch ›
- Katharine Hayhoe Reveals Surprising Ways to Talk About Climate ... ›
An extremely rare North Atlantic right whale calf was found dead off the North Carolina coast on Friday.
<div class="rm-shortcode" data-rm-shortcode-id="24c36ab7f041f96875677ba1e9dc1944"><div class="fb-post" data-href="https://www.facebook.com/CapeLookoutNPS/posts/3608024915884969"></div></div>
- 411 North Atlantic Right Whales Remain: This Solution Could Help ... ›
- Sixth North Atlantic Right Whale Found Dead Prompts Concern ... ›
- First North Atlantic Right Whale Calf of the Season Spotted off ... ›