Mexico’s Energy Reform, Introduce Private Enterprise

The United States isn’t the only country in the hemisphere suffering from an incoherent energy policy. An effective energy policy is one that gets energy instead of one that won’t use all energy resources available.Mexican President Enrique Pena Nieto listens to an attendee at the annual Allen and Co. conference at the Sun Valley

Mexico’s problem . . .

Mexico is the world’s 10th-biggest producer of crude oil, according to OPEC data, yet output has fallen by a quarter since hitting peak production of 3.4 million barrels per day in 2004. The country also is a top oil exporter to the United States but has to import nearly half of its gasoline due to a lack of domestic refining capacity.

Our problem? We haven’t built a new refinery in decades. The government limits the energy industry by restricting access to available resources to the bidding of regulatory agencies and special interests whose goals, although noble, are not ready for prime time nor economically feasible at this time. Not only that, but the oil industry has become deformed as a private enterprise, a result of growing government intervention.

Parallels abound between the role government plays in United States and that of Europe and Mexico. Economically, Europe, and toss Russia into the mix too, is introducing more capitalism, private sector business and ownership, as a way to raise them from the economic malaise that their socialist models have produced. On the energy front, Mexico is looking to change from their total government-controlled and owned energy sector to one that, for the first time, introduces private enterprise into the mix.

The teachable moment here is where we, as a country, are going wrong. Economically, we are trying to go to a place that from experience, Europe is trying to get away from. On the energy front, the political party in power is inclined to nationalizing the energy industry whether by fiat or through regulatory agencies. The opposite to what, from experience, Mexico sees as a solution.

It’s been proven it can be done. They just took the health care industry, sixteen percent of our entire economy. And just like in Mexico, there are challenges to making real reform. We should know why Europe and Mexico envy what we have accomplished under free-market capitalism. Which is why we should resist any changes that take us to a place from which they are running.

Link: Mexico energy reform due this week, debate over contracts

Congress Asks For, And Gets Exemption From Obamacare

Taxpayers will continue to subsidize the health insurance of members of congress and the staffers that work for them at 75% of the premium. Contrary to what the legislation says, they won’t have to get the same Hear no evil see no evil speak no evil post no evilinsurance that we do. It’s more thumbing their nose at the folks by this administration. Not only has the word “fair” been stricken from the issue, but breaking the law to do it is no big deal. Obama is above the law, and no media is holding him to account.

It’s hard to find any sympathy for the members and their aides when they make from $75,000 to $170,000 a year. And they can’t afford the Affordable Care Act?  And we have to continue to pay 75% of their health insurance? Really?

The scandal is just exacerbated by the silence of the mainstream media. Can you imagine them being quiet about this if there was an R in The White House?

Oh but wait! There is another group in line for a quid pro quo from the President when it comes to Obamacare, aka the Affordable Care Act. Big Labor can’t afford it either. You know, those workers that sold their souls to union bosses and make upwards of 20 and 30 dollars an hour? Now that they’ve found out what’s in it, they don’t like it either. They don’t want to lose the health insurance that Obama said they wouldn’t lose. And they don’t want to have to pay an additional tax because they have a so-called Cadillac plan. Yep, they’ll be next, and Obama will break the law and exempt them. And the media will just grin at that one too.

Link: Congress’s ObamaCare Exemption