May 24 2007

Proposed gas price gouging law tilts heavily in favor of corporations

Congress has proposed a gas price gouging law that specifies fines of up to $2 million (and 10 years in jail) for individuals or $150 million for corporations.  Now $150 million is intended to seem like a lot, but compared to the fine for an individual gas station owner it is hardly a slap on the wrist.

Let's do the math.  A typical gas station owner around these parts (the WV outback) makes maybe $50 to $200 thousand a year.  A $2 million fine would represent at least 10 years worth of earnings.

Exxon made $36 billion in 2005 (and is raking it in even faster this year).  A fine of $150 represents about 1.5 days worth of Exxon's earnings. 

For the fines to be comparable either the individual fine should be around $1000 with no jail time or the corporate fine should be $360 billion with a lifetime jail sentence for the CEO and up to 10 years for board members.

Stray Thoughts from Don Alejandro
Who thinks corporations that claim the rights of "personhood" should also be held to the same standards of behavior as persons rather than being allowed to behave like sociopaths