People's History of the United States_ 1492 to Present, A - Zinn, Howard [339]
Carter’s “populism” was not visible in his administration’s relationship to the oil and gas interests. It was part of Carter’s “energy plan” to end price regulation of natural gas for the consumer. The largest producer of natural gas was Exxon Corporation, and the largest blocs of private stock in Exxon were owned by the Rockefeller family.
Early in Carter’s administration, the Federal Energy Administration found that Gulf Oil Corporation had overstated by $79.1 million its costs for crude oil obtained from foreign affiliates. It then passed on these false costs to consumers. In the summer of 1978 the administration announced that “a compromise” had been made with Gulf Oil in which Gulf agreed to pay back $42.2 million. Gulf informed its stockholders that “the payments will not affect earnings since adequate provision was made in prior years.”
The lawyer for the Energy Department who worked out the compromise with Gulf said it had been done to avoid a lengthy and costly lawsuit. Would the lawsuit have cost the $36.9 million dropped in the compromise? Would the government have considered letting off a bank robber without a jail term in return for half the loot? The settlement was a perfect example of what Carter had told a meeting of lawyers during his presidential campaign—that the law was on the side of the rich.
The fundamental facts of maldistribution of wealth in America were clearly not going to be affected by Carter’s policies, any more than by previous administrations, whether conservative or liberal. According to Andrew Zimbalist, an American economist writing in Le Monde Diplomatique in 1977, the top 10 percent of the American population had an income thirty times that of the bottom tenth; the top 1 percent of the nation owned 33 percent of the wealth. The richest 5 percent owned 83 percent of the personally owned corporate stock. The one hundred largest corporations (despite the graduated income tax that misled people into thinking the very rich paid at least 50 percent in taxes) paid an average of 26.9 percent in taxes, and the leading oil companies paid 5.8 percent in taxes (Internal Revenue Service figures for 1974). Indeed, 244 individuals who earned over $200,000 paid no taxes.
In 1979, as Carter weakly proposed benefits for the poor, and Congress strongly turned them down, a black woman, Marian Wright Edelman, director of the Children’s Defense Fund in Washington, pointed to some facts. One of every seven American children (10 million altogether) had no known regular source of primary health care. One of every three children under seventeen (18 million altogether) had never seen a dentist. In an article on the New York Times op-ed page, she wrote:
The Senate Budget Committee recently . . . knocked off $88 million from a modest $288 million Administration request to improve the program that screens and treats children’s health problems. At the same time the Senate found $725 million to bail out Litton Industries and to hand to the Navy at least two destroyers ordered by the Shah of Iran.
Carter approved tax “reforms” which benefited mainly the corporations. Economist Robert Lekachman, writing in The Nation, noted the sharp increase in corporate profits (44 percent) in the last quarter of 1978 over the previous year’s last quarter. He wrote: “Perhaps the President’s most outrageous act occurred last November when he signed into law an $18 billion tax reduction, the bulk of whose benefits accrue to affluent individuals and corporations.”
In 1979, while the poor were taking cuts, the salary of the chairman of Exxon Oil was being raised to $830,000 a year and that of the chairman of Mobil Oil to over a million dollars a year. That year, while Exxon’s net income rose 56 percent to more than $4 billion, three thousand small independent gasoline stations went out of business.
Carter made some efforts to hold onto social programs, but this was undermined by