As I write this on Monday night, there are rumors around that BP
will agree to President Barack Obama’s demand that the oil giant
“voluntarily” put about $30 billion into a fund to be
administered by the government to compensate victims of the Gulf
of Mexico oil disaster.
Now, no one disputes that this is a real disaster and that
BP acted irresponsibly in commissioning Trans-Ocean and
Halliburton to drill for oil in waters so deep that if a failure
occurred there would be no way to fix it — at least until major
damage had been done. BP, Trans-Ocean, and Halliburton, as well
as the individuals involved, have much to answer for.
But the action of the President in demanding this immense
transfer of the stockholders’ wealth without any legislation or
court decision is extremely worrisome.
We live in a Constitutional Republic. The President’s job
under the Constitution is to enforce the laws made by the elected
Congress. His job is not to create new laws and enforce them all
by himself. His job is as magistrate under the Constitution, not
as Caudillo. He is not the law. He is supposed to enforce what
Congress decides.
The BP behavior is reminiscent of how, immediately after
assuming office, Mr. Obama, with no Congressional authority or
administrative allowance, simply made a phone call to fire the
head of GM. When I called the White House press office to ask
under what law or regulation Mr. Obama was acting, I was told he
did not need a law. If the government put a lot of money into GM,
it could call the shots at GM, I was told. But under what
authority, I asked. “None needed,” was the final answer.
Without any new legislation, President Obama has used
returned TARP money as a political slush fund to prop up favorite
industries. This is the same problem: serious executive action
without legislative authority.
The same goes for Mr. Obama’s demand that BP pay the lost
wages of oil and gas workers suspended from work because of the
moratorium on Gulf of Mexico underseas drilling. There simply was
no legislation allowing this kind of specific demand. Mr. Obama’s
demand was in the nature of a threat, more than a Constitutional
act.
Of course, every President tries “jawboning” to restrain
steel company price increases or something similar. But to create
specific enactments and actions without any authority — now Mr.
Obama’s specialty — is so at odds with the law of the land that
it terrifies me. These are not the acts of a teacher on
Constitutional law. These are the acts of a big city boss or a
third world dictator. If you want to know why business has pulled
in its horns and hunkered down, and why people at tea parties and
elsewhere are scared, look no further than Barack “I Am The Law”
Obama.
Is there anyone in Congress to stop him? Is there anyone in
a black robe to stop him? Or is everyone already too scared to
challenge the Duce in the White House?