If the Republican and Democratic presidential candidates
were forbidden to offer proposals based on collectivist
economic thinking, they would have to keep mum the entire
campaign.
We are in for three months of unrelenting nonsense from
President George W. Bush and Sen. John F. Kerry. That
wouldnt be so bad if most people recognized it as
nonsense. But since education these days is intended more
to create quiescent good citizens than
skeptical thinkers, most people will be taken in by these
charlatans.
Last week Kerry did what presidential candidates love to
do: promise energy independence. Run like the
wind when you hear that term. It is a euphemism for
the central planning of our economic activities. Kerry
has not yet learned why socialism failed.
Kerrys energy plan differs from Bushs in only
minor ways. In response to rising oil prices and
instability in the Middle East, Kerry proposes that the
government lead an effort to deemphasize foreign oil,
lower gasoline prices (and oil company profits), increase
efficiency, and stimulate the development of alternative
fuels. According to a campaign news release, The
Kerry-Edwards energy plan will harness the full force of
American ingenuity to create the energy of the future and
make America independent of Middle East oil. While taking
a series of short-term steps to help families and
businesses by bringing down energy prices, their plan
will undertake a comprehensive, long-term strategy for
energy independence that also creates new, good-paying
jobs in the process. What will he do on January 21,
create a perpetual-motion machine?
What is not said is that even attempting this would
require massive government power to manipulate private
economic activities. Kerry assumes that his nationalistic
appeals, oil-company bashing, and promises of low prices
and high-paying jobs will distract us, much as an infant
can be distracted by the sound of a rattle. Close
examination of his plan should cause concern to anyone
who understands freedom and the virtues of free
enterprise.
For example, Kerry promises to set up a $20 billion trust
fund, financed from existing offshore oil and gas
royalties, to increase the fuel efficiency of vehicles
and promote the development of alternative fuels. He
apparently learned nothing from economics and history. As
long as energy is scarce, the free market will contain
the right incentives for personal conservation, increased
efficiency, and entrepreneurship aimed at more-secure and
alternative sources of energy. To propose that government
should direct these activities is to believe that
bureaucrats know more and will make wiser decisions than
hundreds of millions of people with intimate knowledge of
their own needs and capacities in the decentralized
marketplace. In other words, its like believing in
Santa Claus.
Where was Kerry during the late 1970s when the Carter
administration poured millions of dollars into
synthetic-fuel programs with nothing to show for it? Has he
bothered to look at the results of mandated
fuel-efficiency for cars? When the cost of driving goes down,
people drive more, so no gasoline is saved. But when cars are made
lighter and smaller, which is partly how efficiency has been achieved,
they become less crash-worthy and
highway deaths increase.
Regardless of what Kerry says, government does not know
best. Its economic record is dismal. Bush has no edge
here. His energy plan also puts government at the center,
handing out subsidies and tax incentives to those who
pursue the administrations objectives. Both are
big-government men.
In a sense, we do need an energy policy to undo
the pervasive government control that exists today. The
military presence in the Middle East is a subsidy from
the taxpayers to the oil companies. If they want that
oil, let them pay the full price for it, including
security. Of course that will mean consumers will pay,
but thats as it should be. If the price is too
high, consumers will conserve and entrepreneurs will be
motivated to produce more-efficient products and find
cheaper sources of energy, oil and otherwise. For this to
happen, however, all energy regulations should be
repealed.
A rational energy policy would consist of six words:
government, get out of the way!
Sheldon Richman is senior fellow at The Future of Freedom Foundation, author of Tethered Citizens: Time to Repeal the Welfare State, and editor of The Freeman magazine. Send him email.
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