Robert Reich: This gusher is an embarrassment for an industry seeking to keep its $4 billion annual tax subsidy from the U.S. government, at a time when we’re cutting social programs to reduce the budget deficit.
Robert Reich: But confusion over who’s in charge – BP or the White House – continues to reign. Questioned about whether BP can successfully shear off the well pipe in order to fit a cap over it, Allen answered “I don’t think the issue is whether or not we can make the second cut. It’s about how fine we can make it, how smooth we can make it.”
Robert Reich: It’s time for the federal government to put BP under temporary receivership, which gives the government authority to take over BP’s operations in the Gulf of Mexico until the gusher is stopped. This is the only way the public know what’s going on, be confident enough resources are being put to stopping the gusher, ensure BP’s strategy is correct, know the government has enough clout to force BP to use a different one if necessary, and be sure the President is ultimately in charge.