Post No. 166: What the Ku Klux Klan Has to Say about Our Dependence on Foreign Oil

© 2011, the Institute for Applied Common Sense

Earlier this week, a Saudi prince called for lower oil prices. Some of you might be surprised at what his statement revealed about how the Middle East views us, but we’ll get to that in a minute.

There are two stories upon which we often reflect in thinking about “group dynamics,” one involving relatively large groups and the other about small groups.

The first involves black folks. During the early 1970s, the top R&B/urban music station in Atlanta had a very popular black DJ, who used a large number of recorded exchanges between fictional characters to send messages to his listeners.

The one which struck us most forcefully was the purported conversation between 2 Ku Klux Klan members saying that to accomplish their goals, they need not waste their time, energy and bullets, since they could simply “place their guns on the shelves; because those _____ are going to kill themselves.” The DJ was trying to get his fans to appreciate the damage to the black community brought on by, what sociologists and urban specialists refer to as, “black on black crime.”

The second story reveals how in some instances, members of a group may have good intentions and the same ultimate goal, but disagree about how to go about achieving that goal. A well-educated, sharp, upper middle class couple we know had a child who suffered from a congenital condition which caused the child to self-inflict injury.

When the child was young, the parents disagreed about the course of treatment to address the condition. The disagreements continued over the years as the child grew older, and the child’s self-destructive behavior became more intense.

Once the child approached puberty, and grew stronger physically, the parents could no longer handle the child themselves, and were forced to have the child restrained initially, and ultimately confined to an institution. Shortly thereafter, the parents divorced (significantly because of the disagreements regarding the treatment), and the child no longer had the benefit, if any there were, of a parental support team to battle his unfortunate condition.

To this day, the parents argue about the “correct” approach to treatment.

Getting back to the Saudi prince, whose grandfather was the founding king of modern day Saudi Arabia, Al-Waleed bin Talal said Sunday that he prefers that oil prices decline so that western industrialized nations do not accelerate efforts to become energy independent. According to an article on CNN.com:

"’We don't want the West to go and find alternatives, because, clearly, the higher the price of oil goes, the more they have incentives to go and find alternatives,’ said Talal, who is listed by Forbes as the 26th richest man in the world.”

Actually, it seems like a smart approach on the part of OPEC, if you're in the catbird seat.

We don’t know about you, but that a foreign nation or some other entity has us by the balls, and does not mince words while clearly expressing it to the world, should be disturbing to us all. What’s more interesting is the paucity of outrage on our part that someone would characterize our internal “group dynamics” in such a manner.

The reason that we really can’t complain is because it is the "truth," (which unfortunately, despite the claims of many Baby Boomers, shall not "set us free" from this addiction).

We have no one to blame but our collective selves.

And yet like the couple with the child, we argue and debate the manner in which we should “wean” ourselves off of foreign oil. And while debate is always good, at some point there has to be resolution, followed by action.

Imagine a team of doctors treating a heroin addicted patient, debating the treatment approach and trying their various, conflicting approaches as the rehab facility administration changes from time to time, while the patient continues to use heroin for 40 years.

Is the current state of affairs a function of our governance model? Payments by Big Oil to our politicians? The American consumer’s love affair with driving and the individual freedom which goes along with driving one’s own vehicle? Is there a class issue associated with urban mass transit?

We don’t know. We doubt that anyone really knows. But we do know that we can’t keep delaying finding solutions to problems while engaged in doctrinal debates for very much longer.

It will be the death of us, by more forces than just oil.

Perhaps the Common Sense and Compassion Party formed this year by one of regular followers, the Independent Cuss, has the “right idea.” According to their Party Platform:

“We believe that neither should one kill the goose which lays the golden eggs out of spite (the ideological left), nor should one kill his neighbor and feed him to the goose as an artificial growth hormone for increased egg production (the ideological right).

Where does it all end?

Post No. 81: Rear View Mirror: Post - Super Bowl Edition (or How Quickly We Forget)

© 2009, the Institute for Applied Common Sense

We are once again delighted to have a contribution by The Laughingman.

In the summer of 1971, then President Richard M. Nixon introduced the American public to mandatory wage and price controls, pursuant to the Economic Stabilization Act of 1970, setting off a wave of unintended consequences.

(For those of you under the age of 45, we have provided you with some nifty links enabling you to further explore this seemingly ancient history.)

President Nixon's action was largely the result of the cost of America's longest war... and its first defeat.

Both Nixon and his predecessor, Lyndon Baines Johnson, had correctly assumed that support for the conflict would totally evaporate should the American people get any idea of what it was actually costing. Consequently, both men played their economic cost cards very close to their vests.

Wage and price controls had two immediate impacts on both corporations and labor.

For corporations, any reduction in the price of a product to address declining economic circumstances was viewed as suicidal because of the possibility of the corporation becoming locked into that lower price into perpetuity.

For labor, compensation negotiations shifted from current pay to future benefits, effectively moving what the workers earned from pay to future promises of health care and retirement income.

Both groups had one thing in common - neither trusted the federal government.

As both struggled with this new reality, the government went chasing niche interests in hopes of building support for an increasingly unpopular war. Detroit was given a couple of years to make mandatory seat belt/ignition interlocks standard equipment on every car sold in the United States by the 1974 model year.

Our news papers became awash in "coupons" to be submitted to the retailer, or sent directly to the factory to obtain a temporary price reduction on just about anything. As soon as P&G discovered that more than 40% of these coupons were never redeemed, it began to change its strategy, from strength of wholesale sales based on pricing and advertising superiority, to coupons, thus shifting pricing and advertising largely to retailers.

Welcome to the game, Wal-Mart.

Unions came up with ideas like "job banks" to insure that if their workers could not share in economic upturns, at least they would not lose their income when the market turned down.

President Nixon, with new problems of his own, finally pulled American combat troops out of Viet Nam on March 29, 1973, but the cost of the war remained a lingering problem, even as that only class of criminals native to the United States, Congress, debated how the "peace dividend" could best be spent to their individual benefit.

It was a short debate.

The Yom Kippur War only lasted from October 6 to October 26, 1973 (some have advanced it lasted until December 23, 1973), but the Arab Oil Embargo lasted from October, 1973 to March, 1974... temporarily quadrupling the cost of oil.

On January 2, 1974, President Nixon signed the "Emergency Highway Energy Conservation Act" into law, basically denying federal highway funds to any state not immediately enacting a 55 mph speed limit.

The United States became the laughing stock of the world-wide automotive community.

The idea was to cut U.S. oil consumption by at least 2.2%. Interestingly, U.S. oil conservation never exceeded 1%... and by most independent analysis never got above .5%... nevertheless, the law remained on the books until 1995.

The laughter only got louder as the American consumer simply refused to buy an automobile equipped with technology that made it impossible to start unless everybody (and every heavy package) in the car was wearing a properly connected seat belt.

Not only did American corporations and labor no longer trust the government, it appeared that the government no longer trusted them.

Not surprisingly, light vehicle sales tanked. 1975 looked as if it would be lucky to reach half of 1973's volume.

On August 8, 1974, during the acoustic segment of a Crosby, Stills, Nash, and Young concert in Newark, New Jersey, Richard Nixon resigned the presidency.

Six months later, during half-time at Super Bowl IX, Joe Garagiola suggested that the solution to all our economic ills could be solved fairly simply: "Get a car. Get a check."

Five years later, round about January, and on its way to 70 something consecutive monthly sales records, Tom Messner and Barry Vetere produced a $100,000 television commercial for Saab with a visual of empty car haulers driving down various roads.

The voice over ran something along the lines of, "Last year, Saab sold every single car they imported to America...even the 36 neon green ones with the orange interiors, and the rubber floor mats. So, if you want to buy a Saab this year, you might want to hurry."

This was clearly out of step with what had become standard automotive sales procedure, but according to Bob Sinclair...CEO of Saab NA at the time; "If you build cars that people want to buy, and price them accordingly, you don't have to bribe them to buy them."

Now that we’ve gotten beyond the hoopla of this year’s Super Bowl, and the depressing atmosphere at the recent North American International Auto Show, I would sure feel a whole lot better about the future or our automobile industry, if President Obama could find the time to have lunch with Bob, before we begin production of the new Pelosi.

© 2009, the Institute for Applied Common Sense