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November 30, 2006
Hugo Chavez's odd charitable venture
This OpinionJournal editorial reviews the rather odd arrangement under which Houston-based energy company Citgo -- which is controlled by the Socialist Venezuelan government of Hugo Chavez -- supplies home heating oil to former Democratic Congressman Joseph P. Kennedy, II's Citizens Energy Corporation at a 40% discount. The nonprofit Citizens passes the savings onto the poor and contends that it helps 400,000 homes in 16 states that would otherwise have trouble heating their homes.
The OpinionJournal piece scours Kennedy for playing nice with Chavez, but the article fails to mention the oddest aspect of this supposed charitable venture. The poorest of the U.S. citizens who will receive the discounted price on the home heating fuel that Citgo sells to Citizens are far wealthier than the poor people of Venezuela, four out of 10 of whom survive on $2 a day or less. How does it make sense for Chavez and Kennedy to sell oil at a 40% discount to people in the U.S. who are far richer than Chavez's constituents in Venezuela? Sort of sounds like taking from the poor to give to the not-as-poor to me.
By the way, as noted in this earlier post, don't worry too much about Chavez cutting off Venezuelan energy supplies to the U.S. We'll be just fine without them.
Posted by Tom at November 30, 2006 4:29 AM
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