Bad Energy Policy?

Thomas Friedman of the NY Times writes a pretty good opinion piece today. While I normally do not completely agree with Mr. Friedman, he does make some good points. I tend to agree with this part:

Hillary Clinton has decided to line up with John McCain in pushing to
suspend the federal excise tax on gasoline, 18.4 cents a gallon, for this
summer’s travel season. This is not an energy policy. This is money laundering:
we borrow money from China and ship it to Saudi Arabia and take a little cut for
ourselves as it goes through our gas tanks. What a way to build our country.

When the summer is over, we will have increased our debt to China,
increased our transfer of wealth to Saudi Arabia and increased our contribution
to global warming for our kids to inherit.

The McCain-Clinton gas holiday proposal is a perfect example of what energy
expert Peter Schwartz of Global Business Network describes as the true American
energy policy today: “Maximize demand, minimize supply and buy the rest from the
people who hate us the most.”

While I do not mind borrowing from the Chinese (we give them paper) or paying the Saudi's (we give them paper), it does seem the government has set up some strange incentives. The reason for this conundrum is politicians will not get re-elected (or elected) with high gas prices. Americans believe it is a birthright to have cheap gasoline.

The temporary relief of the 18.4 CPG Federal Gasoline Tax will do nothing to curb demand. If anything it will cause demand to rise and contribute even more to the problem of weening our country off the gasoline addiction.

I am also not in favor of subsidies for wind and solar. If these technologies are worthwhile, they should stand on their own. Why should tax payers foot the bill for companies to develop new products. This is the risk that entrepreneurs should take. Plus, it would appear that we can live off the subsidies the Japanese and Germans make to the industry.

I also laugh at the prospect of dependency on wind energy. Mother nature is more volatile and unpredictable than Middle East dictators. While it is nice to harness some "free" energy now and then, depending on this method of generation for a significant piece of our power need is insane.

The cold hard truth is we need traditional as well as new forms of energy. Conservation is a good practice with anything in short supply and $4 gas is a great incentive to conserve. Let prices work their magic in the market place. It is working for my family (as we go to get a new 32 MPG car today) and it is really the only solution that will solve the energy "crisis." Unfortunately politicians, and the people that vote for them, feel something has to be done.