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The Business of Big Business

Not many yuppies have a fond desire of making it big by going to work at their local grocery store. Indeed, it is more common to choose large firms like Microsoft, Google, or GM, or BP. Today’s world of big business has its sights set on one thing: getting bigger.

That’s both a solution and a problem. Corporate control is one of many ways to over-throw a country’s sovereignty. Let’s study a theoretical example of big oil companies. The Bible declares that mystery Babylon will make other nations drunk with her wine. Her wine is oil. And the drunkenness? That’s our upscale way of life that many Americans greatly take for granted. If the high-conflict nations we buy oil from (which amounts to roughly 1/2 of America’s oil consumption) were to suddenly stop selling oil to us, how would that impact American way of life?

In the long term, not that much. We would eventually innovate and produce oil ourselves in renewable form, such as algae-based oil products or possibly a small portion from soybeans as well. At some point we would, and could, recover. It’s that time in-between that is detrimental. There is virtually no defense against a sudden lack of it. The oil we have in reserves is only enough to last us roughly a year, maybe a little more. Drastic austerity measures such as gas rationing would come into play.

What’s worse is that oil is not only fuel for transportation, but also used widely in medicine and plastics. How many of your household items are made from plastic right now? You or your parents might remember a time when most bottles were actually made from glass. But they are made from plastic now under the guise of cheaper materials. I assure you, making bottles from glass again will not harm Coke’s bottom line significantly at all.

The main issue is comes from the fact that oil is a limited resource. There is enough of it in the world to last us another hundred years. The problem is, however, that it is becoming increasingly harder to drill. At some point it will not be economically viable to drill oil unless the prices of oil rise drastically. When oil was first discovered, it would cost roughly 1 barrel of oil to mine out 99 more. Today it costs 1 barrel to mine out 3. That’s not a big return. When the ratio goes from 1:3 to 1:1, oil will not be able to function without government intervention. And without the government’s “help” in that matter, people will suddenly not be able to live as they used to live anymore.

1 gallon of gasoline is the equivalent of 4,000 man-hours of labor. You can buy 4,000 man-hours of labor for $2.50 on average in America. If you were to buy that in physical labor through employment – even at minimum wage – that would cost you about $40,000 for 1 hour of “energy” that 1 gallon of gas produces. Do you see the problem when companies get too big yet?

You can see that when an oil company gets too big it eventually engulfs itself into the fabric of legislation and corruptible influences. That’s a lot of power. And that’s also why Henry Kissinger said that you can literally control nations with oil. Consider for yourself other types of business that are too big and what you think the remedy for it is.

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