Joining the Ranks of Nationalization

I just can't believe what I'm reading... we're continuing down the road of nationalizing the banking industry (subscription):

Treasury Secretary Henry Paulson told international leaders on Sunday that isolationism and protectionism could worsen the spreading financial crisis. With a new trading week dawning, U.S. lawmakers urged quick action by the Bush administration on measures to make direct purchases of bank stock to help unlock lending.

Sen. Chuck Schumer said an administration proposal to inject federal money directly into certain banks, in effect partially nationalizing the banking system, "is gaining steam."

"I am hopeful that tomorrow, the Treasury will announce that they're doing it. And they have to do it quickly ... markets are waiting," Schumer, D-N.Y., said.

Who else nationalizes their industries?

Last month, [Venezuelan President Hugo] Chavez ordered a state takeover of several major oil operations that had been controlled by foreign-owned corporations.

Oh, and let's not forget Russia...

Since [Russian President Vladimir] Putin's election in 2000, the Kremlin has brought national television broadcasters under state control while state-owned or state-controlled companies have bought up some of the country's most influential newspapers and magazines.

Putin, like Chavez, also nationalized the energy industry in 2006. We're moving awfully quickly down this path, and I think it's pretty scary.

Third World Tactics

Ever wonder why most Latin American countries lag so far behind the United States when it comes to economic prosperity? Think inadequate protection of private property rights. See, it is hard to encourage growth in countries where a sudden change in the political landscape can result in the new government deciding to seize a private investment for the "public good."

Keeping that in mind, what sort of message do you think this sends (subscription) to those who would consider investing in New Mexico:

In 2004, [the newly formed public Albuquerque Bernalillo County Water Utility Authority] increased what it charges [the privately owned New Mexico Utilities Inc.] for sewer service by tens of thousands of dollars [in blatant violation of a 1973 contract]. The utility [which has provided services to area residents since the 1960's] sued.

The authority [created in 2003] has made no secret that it wants to condemn New Mexico Utilities and merge its operations with the city/county agency.

Think about that... a new governmental agency is formed in 2003, and one of their first orders of business is to try and seize a private company. A private company that has been operating a viable, growing and successful business for more than 40 years. This is wrong. Our elected officials need to be reminded that this is not the way that America works.