No More Mr. Tough Guy

Wednesday, February 8th, 2006 by RLR

From The NY Times
By Thomas L. Friedman

friedman new 184I’ve always thought Dick Cheney took national security seriously. I don’t anymore. It seems that Mr. Cheney is so convinced that we have no choice but to be dependent on crude oil, so convinced that conservation is just some silly liberal hobby, that he will never seriously summon the country to kick its oil habit, never summon it to do anything great.

Indeed, he seems determined to be a drag on any serious effort to make America energy-independent. He presents all this as a tough-guy “realist” view of the world. But it’s actually an ignorant and naïve view — one that underestimates what Americans can do, and totally misses how the energy question has overtaken Iraq as the most important issue in U.S. foreign policy. If he persists, Mr. Cheney is going to ensure that the Bush team squanders its last three years — and a lot more years for the country.

Listen to Mr. Cheney’s answer when the conservative talk show host Laura Ingraham asked him how he reacted to my urgings for a gasoline tax to push all Americans to drive energy-saving vehicles and make us energy-independent — now.

“Well, I don’t agree with that,” Mr. Cheney said. “I think — the president and I believe very deeply that, obviously, the government has got a role to play here in terms of supporting research into new technologies and encouraging the development of new methods of generating energy. … But we also are big believers in the market, and that we need to be careful about having government come in, for example, and tell people how to live their lives. … This notion that we have to ‘impose pain,’ some kind of government mandate, I think we would resist. The marketplace does work out there.”

What is he talking about? The global oil market is anything but free. It’s controlled by the world’s largest cartel — OPEC — which sets output, and thereby prices, according to the needs of some of the worst regimes in the world. By doing nothing, we are letting their needs determine the price and their treasuries reap all the profits.

Also, why does Mr. Cheney have no problem influencing the market by lowering taxes to get consumers to spend, but he rejects raising gasoline taxes to get consumers to save energy — a fundamental national interest.

Don’t take it from me. Gregory Mankiw of Harvard, who recently retired as chairman of President Bush’s Council of Economic Advisers, wrote in The Wall Street Journal on Jan. 3 about his New Year’s resolutions: “Everyone hates taxes, but the government needs to fund its operations, and some taxes can actually do some good in the process. I will tell the American people that a higher tax on gasoline is better at encouraging conservation than are heavy-handed [mileage standards]. It would not only encourage people to buy more fuel-efficient cars, but it would encourage them to drive less.”

Mr. Cheney, we are told, is a “tough guy.” Really? Well, how tough is this: We have a small gasoline tax, but Europe and Japan tax their gasoline by $2 and $3 a gallon, or more. They use those taxes to build schools, highways and national health care for their citizens. But they spend very little on defense compared with us.

So who protects their oil supplies from the Middle East? U.S. taxpayers. We spend nearly $600 billion a year on defense, a large chunk in the Persian Gulf. But how do we pay for that without a gas tax? Income taxes and Social Security. Yes, we tax our incomes and raid our children’s Social Security fund so Europeans and Japanese can comfortably import their oil from the gulf, impose big gas taxes on it at their pumps and then use that income for their own domestic needs. And because they have high gas taxes, they also beat Detroit at making more fuel-efficient cars. Now how tough is that?

Finally, if Mr. Cheney believes so much in markets, why did the 2005 energy act contain about $2 billion in tax breaks for oil companies? Why does his administration permit a 54-cents-a-gallon tax on imported ethanol — fuel made from sugar or corn — so Brazilian sugar exports won’t compete with American sugar? Yes, we tax imported ethanol from Brazil, but we don’t tax imported oil from Saudi Arabia, Venezuela or Russia.

“Everyone says we need a new Marshall Plan,” said Michael Mandelbaum, a foreign policy expert and the author of “The Case for Goliath.” “We have a Marshall Plan. It’s our energy policy. It’s a Marshall plan for terrorists and dictators.”

How tough is it, Mr. Cheney, to will the ends — an end to America’s oil addiction — but not will the means: a gasoline tax? It’s not very tough, it’s not very smart, and it’s going to end badly for us.

Posted in Business, News, Opinion, Politics | 3 Comments

  • 10 cents a year for 10 years and put it all back into subsities for the purchase of a plug-in hybred car

    Comment by cha | February 12, 2006

  • There are four powerful reasons why phasing in a five dollar per gallon gas tax over the next decade can ensure America’s strength for many years to come.

    These reasons are:

    1) American voter-consumers hold the power and the responsibility to shape America’s future. We do so by voting with our ballots and dollars. Spending and voting in support of our country’s “addiction” to oil will only ensure that America will remain a junky forever.

    2) Those who would do America harm would be dealt a severe blow by a sharp reduction in crude oil imports.

    3) America is divided. We need a space race-like vision to unite us. A grand goal for all Americans to work towards in his or her own small way. Leading the world in energy independence is that vision.

    4) Right now high gas prices are increasing demand for energy efficiency. But paradoxically, the main benefactors are the oil companies that have the most to gain from our “addiction.” A gas tax would have the same positive effect on the market while recycling the money spent on fuel into programs that benefit America such as research into new energy technologies.

    You can find more on this idea at actualitydog.blogspot.com.

    Comment by William Tally | February 12, 2006

  • I do beleive that before you publish anything further on energy issues you should at the least approach the subject from a point of veiw that at least acknowledges depletion.
    We cannot conserve our way to more energy,we cannot physically make more oil(hence cheney’s veiws). You live somewhere between never neverland and reality. Read at least one ore two books on energy depletion (Heinberg THE PARTY”S OVER or Jeremy Leggett HALF GONE for example)
    We cannot conserve our way to more energy we can use less but to what effect to our ecconomy? an economy based on infinite growth (an impossibility)with perputual population growth (Foolish) I think ya need to look at the world and assess what is actually realistic. Because what we have now ISN”T and anyone with two brain cells to rub together will recognize the same thing. compound growth is UN-SUSTAINABLE.

    Comment by Ken | February 13, 2006

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