Guest blogger Dennis Kornbluh continues his opinion piece on energy:
Our government has been hard at work trying to convince us that they are hard at work on the energy problem. If they spent as much time on substantive ideas as they do pandering to the public (who are presumably greedy and stupid), we might actually make some progress. The latest silly idea is the "summer gas tax holiday" proposed by John McCain and jumped on by Hillary Clinton. Thomas Friedman writes eloquently about the stupidity of this proposal in his recent opinion piece in the New York Times.
Consider for a moment what this tax holiday will be worth to the average driver. Most American's will drive about 5,000 miles between Memorial Day (May 26) and Labor Day (September 1), which is the period when the tax suspension is proposed. If your car gets 20 miles per gallon, you will enjoy an extra $46. Whoopee! Meanwhile, the government will be out $9 billion in tax revenue.
What could we do with $9 billion? We could fix our roads and bridges. We could improve our inadequate mass transit system. We could even give tax credits to the US auto makers if they'd get their heads out of the darkness and produce the high mileage vehicles that they've been capable of producing for decades (Check out the movie "Gashole", which documents how the oil companies bought and buried patents for inventions that enabled cars in the 1940's to get 100 mpg).
At a time when we should be preparing for the end of cheap oil by encouraging conservation and investment in alternative energy sources, we are, instead, encouraging consumption. A tax that makes it expensive to drive a land yacht across the country with a vehicle in tow is a good thing! The revenue raised from those taxes could displace tax credits for companies that are trying to ramp up advanced energy technologies. Instead, Congress is allowing tax credits for wind and solar to expire this December, while simultaneously giving billions of dollars in subsidies to the oil & gas companies.
Isn't our government doing something good by promoting biofuels? Unfortunately, biofuels are increasing CO2 emissions, and causing hardship around the world due to the impact on food prices. Now that so much land is being devoted to biofuel crops like corn, soybeans, and switchgrass, the remaining land for food crops has diminished, which drives up the cost. Good for farmers, bad for consumers, bad for the environment. Finally, the subsidies that our government gives to biofuel producers is the only way they are able to come close to making a profit. Farmers (who deserve a break) and biofuel producers should enjoy this phenomenon while it lasts.
Conclusion: Big changes lie ahead as oil prices continue to rise. Let's elect leaders who have a realistic energy strategy and kick the special interests out of Washington.
