SOUTH DAKOTA STRAIGHT TALK

Nothing gets the public and politicians excited like high-energy prices. Energy prices like taxes are one of the ultimate pocket book issues.

Consumers are reluctant to acknowledge it but they have been spoiled by relatively inexpensive energy. Higher prices cause pain to consumers and the economy. The public wants affordable energy and a higher price reduces discretionary spending and raises the cost of many goods.

Elected officials react to the outrage of higher prices with outrage of their own, they blame producers and distributors and come forward with quick fixes and salve but no real long-term solutions. Our Politicians try to find quick fixes to keep prices low (i.e. demand release of the Strategic Petroleum Reserve) or concoct schemes like the $100 rebate idea to act like they care and are dealing with the problem.

Of course they just want to deal with the next election. To work toward solutions causes pain, not something elected officials and politicians want to be associated with. In fairness except for minor tweaking not much has been done since our first “Energy Crisis” – The Arab Oil Embargo, thirty-five years ago. Yes we have CAFÉ standards for automobiles (although trucks and SUVs are exempt or have their own special rules) and yes we have made some very limited progress on renewable fuels (whose debates have been about special interest politics not solving problems). And standards for insulation and energy efficiency have been mandated in construction.

For more specifics on Inaction and possible approaches see the previous post Why Wait .

On energy and demogoguery Republicans are equally to blame as Democrats. I prefer free market approaches (generally favored by Republicans) but Government action (favored by Democrats) is also necessary.

The problem is one of Supply and Demand. We have done almost nothing to deal with them. We need more supply and relatively less demand or more efficient use of energy to solve the crisis. Giving rebates or taxing so called windfall profits will not create any more energy or reduce usage.

Mandating ethanol is just a small part of any solution. Ethanol is a step in the right direction but will not solve in a signifcant way shortages. Farm constituencies and ethanol plant owners love their Representatives, Senators, Governors and Presidents for championing it. But we need more than helping our agricultural constituency to solve this problem.

My generation of political activists have failed our children. We are less well off today on the energy front than when we were coming of age and when our children were our age.

The political pandering should stop and Statesmen shoud deal constructively with energy.

Fixing the problem takes political courage. Contining to fail to do so simply means that prices over time will continue to rise and our standard of living and national security will be diminshed.