Fueling Energy Independence

Thomas Friedman shared an opinion in the NY Times today. In his OpEd piece he advocates, strongly and convincingly, for a high federal gasoline tax. Whereas I agree with him, I understand why it will never happen.

The American consumer has a very short attention span, and our political leaders have very little backbone.

We, as a nation, go from frugality when the price of gas is high, to profligacy when it is low. Mr. Friedman points out that in December, trucks and SUVs are outselling cars - the first time in nearly a year that has happened.

It will not be an easy thing to do, but something must be done to break the boom-bust mentality of consumer habits. Otherwise America will remain at the mercy of OPEC and the middle-eastern oil exporters, our foreign policy will remain driven by our need for oil, and our automobile industry will remain paralyzed by the inability to build the vehicle du jour.

One of the main reasons that the Big 3 automakers are in trouble is because during times of low gas prices the consumer demands big gas-guzzling trucks, SUVs and muscle cars. Then when prices ramp up they demand extreme fuel efficiency. The car makers can't retool their factories and their marketing campaigns fast enough to satisfy this capricious demand.

We need to understand that there is a high price to be paid, even when gasoline is cheap. That high price needs to be at the pump - not in bankruptcy court for the automobile industry, not in the lives of our soldiers in trying to defend an indefensible foreign policy motivated by a lust for oil, and not in international political capital.

Once the consumer understands that the days of cheap gas are over, they will adjust their psyche, their habits, and their budgets to accommodate that reality. Then, and only then, can a robust alternative fuel industry become viable. A gasoline tax which permanently fixes the price of gas at $5 a gallon would be a boon for that burgeoning industry, and the revenue generated from the tax could be used to fund research and development for it.

But consumers have a very short memory and our political leaders have very little will.

We accept the verdict of the past until the need for change cries out loudly enough to force upon us a choice between the comforts of further inertia and the irksomeness of action. --Judge Learned Hand