The Dead Zone (or, BP and the Oil Well That Keeps on Giving)

[jabarto]

foolish protectionism

You don't actually believe this do you?

[Crazed Rabbit]

You don't actually believe this do you?

Why shouldn't I? It's protectionism*, and it's foolish**. A bit redundant, though.

*From wiki:

The purpose of the law is to support the U.S. merchant marine industry

** When countries retaliate, the final situation is worse for US exports and companies than before the tarrifs.

In reference to the Jones Act specifically (wiki again):

A 2001 U.S. Department of Commerce study indicates that U.S. shipyards built only 1 percent of the world's large commercial ships. Ships are virtually never ordered in U.S. shipyards unless they are for use in U.S. Shipping. The report concluded that the lack of United States competitiveness stemmed from foreign subsidies, unfair trade practices, and lack of U.S. productivity.

In other news, a federal judge has blocked the deepwater drilling ban, pointing out that the government outright lied about what the experts consulted supported:

A federal judge in New Orleans halted President Obama's deepwater drilling moratorium on Tuesday, saying the government never justified the ban and appeared to mislead the public in the wake of the Gulf of Mexico oil spill.

Judge Martin L.C. Feldman issued an injunction, saying that the moratorium will hurt drilling-rig operators and suppliers and that the government has not proved an outright ban is needed, rather than a more limited moratorium.

He also said the Interior Department also misstated the opinion of the experts it consulted. Those experts from the National Academy of Engineering have said they don't support the blanket ban.

"Much to the government's discomfort and this Court's uneasiness, the summary also states that 'the recommendations contained in this report have been peer-reviewed by seven experts identified by the National Academy of Engineering.' As the plaintiffs, and the experts themselves, pointedly observe, this statement was misleading," Judge Feldman said in his 22-page ruling.

Good.

CR

[jabarto]

Why shouldn't I? It's protectionism*, and it's foolish**. A bit redundant, though.

Protecting the everloving hell out of manufacturing industries is what gave rise to the Asian Tigers and Japan. Do you really think the fact that Japan kicked Ford out and kept high tariffs until Japanese auto manufacturers were self-sufficient had nothing to do with their rise to prominence?

[Centurion1]

Except jabarto American companies are prominent. Because of the over the top corporate income business growth is fostered and jobs are created which mommy and daddy get to pay for your material goods, the manufactures of whom you disdain but you still want their product.


Your all a bunch of damn Communist foreigners trying to take over the good old us of a

[jabarto]

Your all a bunch of damn Communist foreigners trying to take over the good old us of a

Only partially correct; I'm not a foreigner.

[Louis VI the Fat]

I'm not a communist.

[Crazed Rabbit]

Protecting the everloving hell out of manufacturing industries is what gave rise to the Asian Tigers and Japan. Do you really think the fact that Japan kicked Ford out and kept high tariffs until Japanese auto manufacturers were self-sufficient had nothing to do with their rise to prominence?

How exactly has the Jones Act worked out for the ship construction industry? Oh, right, only 1 percent of large commercial ships are built in the US. This was no infant industry protection. It was a handout, a crutch never to be withheld. The shipping construction industry likely doesn't even try to be globally competitive, and they know they'll never have to compete at home.

Also, I very much doubt that ship building was an infant industry in the US when this was passed (1920s).

CR

[Myrddraal]

The number crunching column of private eye has some fascinating stats at times. I quote:

11 People killed in an accident on oil rig leased by British company BP, resulting in four presidential visits, a $1.6 bn clean-up and the establishment of $20bn compensation fund in two months.

15,000+ People killed in accident at Bhopal plant owned by American company Union Carbide, resulting in 0 presidential visits, no clean-up and $470m compensation in 25 years.

Note I realise that BP has a large American ownership and nor am I claiming that two wrongs make a right, like I said, I'm just quoting an interesting statistic.

[drone]

15,000+ People killed in accident at Bhopal plant owned by American company Union Carbide, resulting in 0 presidential visits, no clean-up and $470m compensation in 25 years.

Technically, the Bhopal plant was owned by Union Carbide India Limited, an Indian subsidiary. A vital legality that saved Union Carbide's hide somewhat, even if the then-CEO still has an extradition warrant pending. Union Carbide owned 51% of UCIL, the rest owned by Indian investors and the Indian government. If UC had been smarter, the subsidiary would have been named something completely unrelated to Union Carbide, like maybe Eveready Industries. Maybe BP should have left the Amoco name on US operations.

Regarding cleanup, the Indian government took over the site after the leak, and UCIL worked to clean up the site, both before and after Union Carbide sold off it's interest in UCIL to McLeod-Russell. So there has been at least an appearance of a cleanup, but it will probably be a long time before the area is safe. Three big differences between the disasters: at Bhopal the leak was stopped within 12 hours, and the value of the expelled methyl isocyanate gas pales in comparison to the oil that BP is currently misplacing, and BP will still be able to (and wants to) operate in the spill zone.

The compensation Union Carbide offered was $350 million, the Indian government wanted 10 times that. For some reason, the government settled for the $350 million, plus interest. Why the government agreed, I have no idea, but they clearly failed at haggling class. There are several other instances where the Indian government or courts let Union Carbide and/or UCIL off the hook financially. I suspect we will see much the same with the Gulf spill.

Hopefully we get a song out of the Gulf spill that is the equal of RevCo's Union Carbide (either Bhopal or West Virginia mix).

[Tellos Athenaios]

And perhaps another major difference is that while crude oil is bad, at least it can be cleaned up efficiently and quickly (even if the USA doesn't want it, apparently: I refer to the earlier post of Fragony here); whereas methylisocyanate is rather different kettle of dead and thoroughly decontaminated fish.