The Real-Life John Galt

Ayn Rand's Atlas Shrugged is the story of John Galt, a titan of industry who refuses to be exploited by the tyranny of a government that taxes him too much. President Obama's reelection has purportedly prompted a real-life John Galt to action, in the person of Robert E. Murray, CEO of Murray Energy.

The day after the election Murray read a prayer in front of staff members and fired 150 workers from two of his coal mines because, he says, Obama will destroy the coal industry. (The fictional John Galt is an atheist, by the way.) But the fact is, Murray's coal mines are losing money not because of taxation and environmental regulation, but because his filthy and inefficient nineteenth-century product is losing market share to a much cleaner and more efficient twentieth-century product.

Many companies have force-fed employees pro-Romney propaganda in this election cycle, a tactic Romney promoted. Other CEOs besides Murray threatened to fire workers if Obama won, though it's not clear how many have carried through. One nameless Las Vegas businessman claims to have done so, but David Siegel, the Florida timeshare billionaire who threatened mass firings, has instead given employees a raise.

Murray, however, delivered on his threat. He has long used the threat of firings to blackmail employees to donate to Republicans. He set up a PAC and "encouraged" employees to contribute to it with payroll deductions, which have totaled $1.4 million since 2007.  The tactic is a nifty way to get around campaign finance laws, which limit how much money Murray can personally give to candidates. Murray is also the CEO who shut down a mine in Ohio and forced employees to attend a Mitt Romney speech without pay. Not all employees donate voluntarily:

The Murray sources, who requested anonymity for fear of retribution, came forward separately. But they painted similar pictures of the fund-raising operation. “There’s a lot of coercion,” says one of them. “I just wanted to work, but you feel this constant pressure that, if you don’t contribute, your job’s at stake. You’re compelled to do this whether you want to or not.” Says the second: “They will give you a call if you’re not giving. . . . It’s expected you give Mr. Murray what he asks for.”

Murray Energy is in financial trouble, to be sure, but it's not because of excessive regulation or any "war on coal." It's due to competition from cheap, clean-burning natural gas obtained from fracking.

As I've written before, the price of gas has been so low recently that energy companies are losing their shirts, according to none other than the head of Exxon, Rex Tillerson.

Because of that, more and more utilities are turning to natural gas turbines instead of coal-fired power plants. Natural gas is cheaper and safer to produce, easier to use, more flexible, and cleaner. It can generate electricity, heat homes and cook food. It doesn't cause mercury pollution or acid rain. It emits less CO2 per kilowatt hour produced. It's more easily transported through pipelines or in liquid form. It doesn't produce filthy coal slurry that poisons rivers and streams, as has happened at least seven times with Murray's coal operations. It doesn't leave toxic clinkers after burning. Coal mining requires miners to work in filthy conditions a mile underground, or decapitate entire mountaintops to expose coal seams. Natural gas turbines can be turned off and on almost at will, and don't have long startup times like coal-fired plants. And gas turbines use much less water than coal to produce the same amount of electricity, which is important as the nation is still in the grip of a drought with no end in sight.

By switching electricity generation from coal to natural gas the United States has reduced CO2 emissions to what they were 20 years ago.

I'll be the first to admit that natural gas fracking has its problems. In their rush to exploit the new technology many operators have taken shortcuts that have spilled toxic fracking fluids, polluted groundwater and even caused earthquakes. But by slowing down, developing better regulations and licensing only conscientious operators, the problems with fracking can be minimized, all while making natural gas profitable again. And of course, we should be working hard on developing twenty-first century technologies that eliminate the problems of fracking.

But instead of acknowledging the reality of technological and competitive forces that have undermined his antiquated business model, Murray blames his losses on the president and the laws that keep Americans safe and healthy.

It's a blatantly dishonest bait-and-switch argument by a greedy coward. And that's all these John Galt wannabes really are.