Friday, June 11, 2010

BP plans to defer dividend after pressure from Obama

In a wrong-headed move that will surely do nothing to stop the catastrophic oil leak in the Gulf of Mexico, BP announced that it will defer dividends after being pressured by the Obama administration.

If the Obama administration was truly serious about tackling the monstrous hemorrhage of oil in the Gulf, if would instruct BP to increase its dividends. These dividends would then be placed 5,000 feet beneath the Gulf's surface, around the punctured pipe. Each dividend recipient would merely have to dive for their check, and in order to receive it, wrap their belt around the pipe.

As America's free market economy proves, again and again, there's no greater motivator than self-interest and money. I say we put those sound principles to work to solve this ecological and economic disaster in the Gulf.

Milton Friedman and Dick Cheney would applaud this proactive approach.

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