Say Anything Blog

Big news today on the global warming front is a group of industry executives from companies like Alcoa, BP America, Dupont, Caterpillar and General Electric asking the President to impose government-mandated emissions regulations on them.  This is an odd turn of events from American businesses who usually chafe at the idea of government regulations being foisted upon them.

This move by these executives has, as you might expect, gone straight to the heads of environmentalists and global-warming zealots who claim that it’s a validation of their beliefs.  But is it really?  I find it amusing that a group of people (the environmental left, and the left in general) usually so skeptical and critical of even the most innocent actions by large businesses suspend their disbelief willingly when the actions of said big businesses just happens to coincide with their preconceived notions.

But I think the reality of this call for climate action by American big businesses has more to do with protectionism than environmental concerns.  I think most business people would agree with me that heavy-handed government regulations are bad for business.  We accept a certain level of regulation because our society is not anarchistic and we recognize that a certain amount of regulation of free trade is a necessary evil, but aside from a necessary minimum most government meddling is little more than a nuisance to be circumvented by businesses and their customers.

So, given that reality, why do these big corporations like Caterpillar and Alcoa want more government regulation?  Is it because these companies are truly concerned about the environment or is there another reason?  Call me cynical, but I’d suggest that there is another reason.  Like maybe a desire to hold off competition.

Think about it.  The companies calling for these new regulations are massive.  They’re the sort of businesses that can handle a lot of government regulation without batting an eye.  The folks who might have a hard time handling these new government regulations would be smaller companies and start-ups.  In short, rivals to these massive corporations.

One side-effect of government regulation is that it stifles economic activity, and that’s exactly what these huge corporations want.  They want it to be very difficult for any innovative entrepreneurs out there to start up rival companies and take them on in their respective industries.  So they’re calling for regulations that would act has hurdles difficult to get over for new or small businesses, and by being pro-active about it they may even get to play a role in determining what these new regulations will be.  Thus they can perhaps maximize the impediment the regulations serve to their business rivals while minimizing the impact of the regulations on their bottom line.

It’s all fairly transparent, actually, though I suspect most will be too blinded by the “look at these companies trying to make Bush care about the environment” hype to see the truth.