By ANDREW SAJOR
In My Opinion
May 12, 2008 06:29 am
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In a recent New York Times column, three-times Pulitzer Prize winner Thomas L. Friedman wrote about the dangers of suspending the federal tax on gasoline; something many Americans do not want to hear. His point is that we do not have an effective energy policy, stating: "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."
He goes on to say that we are not encouraging alternative energy development and continue to enable big oil and gas to the continued detriment of our economy now and in the future.
Currently some states, including our own, are considering a temporary suspension of their respective gas taxes. Now, if I remember correctly, the taxes levied on gas are supposed to go toward improving our roads and maintaining our bridges, the abhorrent conditions of which have made the news more often than not. Where will the money come from to maintain the roads if we suspend the tax? (This is also an excellent way to stimulate our economy by rebuilding our infrastructure with American labor and materials.)
While the increasing cost of gas is currently hurting many individually, let us be realistic about the actual situation. The United States, compared to most of the world, has enjoyed unusually low gas prices for a long time, and, as a consequence of this, we have developed a lifestyle dependant on cheap gas. To facilitate our gas addiction, we created a huge and costly highway system and, at the same time, failed to develop efficient and convenient mass transportation.
Our homes and factories, until lately, had inefficient heating and cooling systems and, for the most part, are way too big for our needs as were many of our cars. However, we did it because we could afford it. Commuting to work and transportation to town was not a big consideration in our home choices because those costs were not a large part of our budget and, as a consequence, we created urban sprawl and huge suburban landscapes that require automobiles and large energy expenditures.
Unfortunately, there are several things we overlooked:
1. As China and India's middle classes grow (on our outsourcing, and profits from our consumption of the goods and services they produce) so does their thirst for oil. Flush with our cash, they have increased demand for crude which is in finite supply causing prices to increase.
2. Oil companies do not want to invest in new refineries when they can make record profits on existing ones, metering out just enough gas to keep things running (sounds like a drug dealer dealing with a junkie once hooked?).
3. Government has no backbone; politicians do not get elected when they don't give the electorate what they want, even if it is not what they need. Although the U.S. ethanol tariff is small compared to other nations, we add a secondary charge of just over 14 cents per gallon to some imports, the effect of which reaches beyond the price of gas. When we divert corn and other grains to produce ethanol, which are less efficient than the sugarcane Brazil uses, we increase the cost of the grocery cart here at home, a double whammy on the home budget.
What to do? Drive less, carpool, walk or ride a bike. Take public transportation. Write your politicians and demand that money and tax credits be given towards mass transit for both urban and rural areas. Invest in renewable energy in a meaningful way. Think about your energy consumption; look at how much fuel United Parcel Service saved when it developed right turn only delivery system (3,000,000 gallons).
Finally, resist the temptation to go for the quick fix (tax holiday) which will further burden our children and our children's children. In short, live responsibly. You are not the only person in the world.
Based on Friedman's April 30th NY Times column.
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