The patriotism card and why it's not an ace

“I think that the idea that financiers would tell companies in the United States not to increase production and to buy back shares and increase dividends when the profits are at all-time highs is outrageous. It is not only un-American, it is so unfair to the American public.”

The above words came from the mouth of Amos Hochstein, the chief energy adviser of President Biden and they came in response to the U.S. oil industry’s continued refusal to boost production as if that’s something that can be done with a switch any time you like.

But this was not the end of Hochstein’s outpouring of emotion. “You want to pay dividends, pay dividends. You want to pay shareholders, pay shareholders. You want to get bonuses, do that, too. You could do all of that and still invest more. We are asking you to increase production and seize the moment,” he also said, as quoted by the FT.

It’s fascinating how emotions, especially negative emotions such as fear, annoyance, and uneasiness, affect our ability to think rationally. I can think of no other explanation for the above statement, which is clearly untrue. Why clearly? Because if they could indeed do all that (and benefit from it, of course), oil companies would be already doing it.