Oil is the fuel of yesterday’s superpower. America’s future – including our geopolitical security and likely our ecological health - lies in aggressively promoting conservation measures and alternative energy sources.
How best to wean our nation off oil? For starters, I believe we should use our government only to encourage the market, not to dictate to it. The current 'crop' of alt. fuel subsidies and tax credits keeps our federal government in the special interests' pockets. Our government should NOT be in the business of picking winners and losers at the microeconomic level. Corn and ethanol plants are hot business opportunities in my neck of the woods (Missouri) right now, but is that the best use of our tax dollars? I doubt it.
Our government works best when it gives the business community clear direction at the MACRO level (good history examples: Homestead Act in the 1860's, building national highway sytem in the 1950's). So let's do that now.
How? I propose a gas tax, but not of the usual sort. Let's call it the BIG BANG. We citizens, through our elected representatives, support legislation for a gradual tax increase on fuel (say up 2 cents a year for ten years) followed by a radical escalation (say up 50 cents a year after ten years).
The 'slow fuse' period (first ten years) will give the market place both the time to make investments in alt. fuels and allow competition to select the most efficient market-based solutions.
The threat of the 'big bang' will sharpen the business community's focus. Investment capital will flood into the alt. fuel space. The Street will know - because we the people gave them clear direction - that they need to pony up the bucks to make this happen. Why? Because at the end of the day investors invest when it is a fair bet that they will get a return on their investment.
With the BIG BANG in place, American business will make the BIG BET on new sources of energy. Together, we can harness the ingenuity, innovative spirit, and sheer financial muscle of the greatest economy in the world to win this fight.
Energy independence is the CENTRAL FRONT on the War on Terror. And energy independence is critical to developing a sustainable development model for the global economy of the 21st century. So why not make a BIG BET on the BIG BANG?
