Republican Debate and Obama’s Job Speech

A friend of mine recently challenged me via Facebook to watch the Republican debate. I responded that I would if he would, in turn, watch President Obama’s jobs speech to Congress. My friend and I generally have opposite political views, so we took each other up on the challenge. The rules were that we had to watch both in their entirety (no edited, out-of-context sound bites) and no talking-head commentaries (Hannity, Beck, Colbert or Stewart).

So I watched them both. Last night. Via YouTube and the White House website. The nice thing about the internet is you can watch whenever you want. Without commercials, commentaries, etc. And my mind has been racing enough that I woke up this morning at 4:00 am with the debates and speech going through my mind. I finally got up at 5:00 and decided to start writing my opinions and observations. My wife had come home from a meeting near the end of my watching and asked if I was truly watching both with an open mind. I said, “I think so.” I’m not completely sure about that last one because we all have our biases and our opinions that are hard to change, but I tried.

I used to be what would probably be considered a Moderate Republican. But as the Tea Party rose and the Republican Party became more and more whatever they are, I left and voted for Obama in 2008. Or, to misquote Ronald Reagan, “I didn’t leave the Republican party, they left me.” Which leads in to my thoughts on the two topics at hand, since the debate was at the Reagan Library in Simi Valley, California.

THE DEBATE
Tom Brokaw had a comment about the debate format that rang true throughout the evening. He said they set up very strict rules on how the debate would run and then the candidates ignore them anyway. I found that generally true throughout the debate. The most frustrating thing was when a candidate would get a question and respond with “what I REALLY want to say is…” then totally go off on a tangent.

But I don’t want to get sidetracked with that. There were plenty of questions asked and actually answered to generate a good discussion.

Obviously, the economy was the major focus, as it was with Obama’s speech, too. However, probably the single most disturbing thing in the debate that I heard was that the economy was the ONLY issue. Pushed aside, denigrated, or ignored were the other two factors of the Triple Bottom Line (TBL): the environment and social equity. This was what bothered me the most. We should drill in the Everglades (responsibly, of course) to have domestic oil to help the economy. We need to first put up a fence along the Mexican border to keep people out (and, as Ron Paul aptly warned, keep us in) because of what they are doing to the economy, then deal with immigration issues. The economy is the single issue. If the environment or equity don’t fit the immediate economic model, let our immediate economic condition control.

THE JOBS SPEECH
I’m going to tie these together, but this seemed like a good time to segue to Obama’s Jobs speech. I’ve often recently believed and said that we need to increase revenue to get out of our economic mess. Not a popular idea in some no-tax-increase circles. But you have to increase revenue to make up the difference we currently have, regardless of how many spending cuts we propose. That can happen through higher taxes (Warren Buffet and other wealthy people seem to be on board with that) and/or through removing some tax breaks that are not needed anymore (a prime example would be the huge tax breaks oil companies still receive while at the same time reaping huge profits while renewable energy receives a tenth the subsidies and is labeled as “economically unfeasible”).

I’ve also believed for some time that spending money in this time to update our failing infrastructure (roads, transportation systems, electric grid, etc) is an opportunity we should not ignore. Look at history. Lincoln and the Transcontinental Railroad. FDR and the New Deal (granted, with mixed results) and Eisenhower and the Interstate Highway System. Granted, each of these men and “programs” did more than just stimulate the economy. They set the stage for better things. The railroad opened up the West. The New Deal programs resulted in the Civilian Conservation Corps and much of our ability to enjoy our National Forests. The Interstate Highways enhanced our ability for commerce and, simply, connected our nation.

The overarching similarity in all of these (and, I believe, in the proposal the President put forth the other night) is they weren’t simply focused on one thing. When we get that type of tunnel vision, when we look solely at the economic aspect without also considering the social equity or the environment, we will have missed the boat.

CONNECTING THE TWO
I could go on a lot longer with my opinions. But this post is already long enough I’ve probably lost some people.

Our society, our culture, our lives are much richer and vibrant when we take a full and interconnected view of what we are doing. I said I was going to tie these two events together and that is it. While economic recovery in our country is important, we need to guard against single-issue tunnel vision. Too many aspects of our lives are intertwined with each other. Let’s not get so bull-headed about just the economy that we also strip away the beauty of the natural environment or the dignity of another human being.

Energy Subsidies and the “Free Market”

Time and time again, I hear people say that renewables should be subject to the “free market” and should not receive government subsidies. After all, if renewables such as solar, wind and geothermal are viable, the consumer should decide, not the government. And while I understand (and even to a point agree) with those comments, the problem is we simply don’t have a level playing field. Nor do we have (or will we ever have) a truly free market economy. As Wikipedia says, “purely free markets… are theoretical constructs.” So after a recent spate of posts on a couple of threads on my Facebook page, I thought I would address some of the issues that came up.

PURPOSE OF SUBSIDIES
I think the purpose of subsidies is to get fledgling industries off the ground so they can be viable. Call it investment capital, call it what you want, that’s how our culture works. Entrepreneurs have an idea and get investors and/or tax breaks for a period of time so they can build a good foundation and become productive. There is often a huge amount of research and development costs associated with a start-up company. And I’ll be the first to say I’m not an economist. But I will go on to say this isn’t rocket science, either.

The chart I’ve included with this post is based on a 2009 report by the Environmental Law Institute report titled “Estimating U. S. Government Subsidies to Energy Sources: 2002-2008.” The source of the information in the report comes from the Internal Revenue Service, the US Department of Energy, the Congressional Joint Committee on Taxation and the US Department of Agriculture. The report covers the 6-year cumulative period of 2002-2008.

It’s a telling chart because it shows just how disproportionate the playing field really is. 72% of Federal subsidies for energy go to fossil fuels, not renewables. And if you group biofuel in with the fossil fuels (I do; biofuel is stupid), it’s more like 88%. The report goes into a great amount of detail regarding how the subsidies are parsed out.

Historically, a large amount of the subsidies for fossil fuel goes to coal. You know, the same people who brought you mountaintop removal. And black lung disease (and those suffering from it also are subsidized). Oil companies also receive a huge amount of subsidies for off-shore drilling costs, foreign exploration credits and the like.

But I guess my point here is that oil and coal have received subsidies for decades and at least the oil companies, who realistically hold a monopoly over us, are still seeing record profits. It seems subsidies should help companies get established, then phase out, not add on to profits. And the argument that we need to look at how much tax the oil companies pay would be valid if they weren’t paying tax on money we give them. Would you be willing to pay $300 tax on my gift of $1,000 to you? I sure would.

ON AGAIN/OFF AGAIN
In the 1980s, there were some pretty substantial tax credits (yes, subsidies) for solar. During that time, my parents installed a solar hot water system on their house. It’s still plugging along, churning out hot water. Then the Federal credits expired in 2000, 2002, 2004 and almost in 2008. They’ve currently been renewed through 2016.

But in my home state of Oregon, with one of the most aggressive tax credit programs around, the Legislature may look at eliminating them.

It’s this on again/off again situation that never allows any renewable energy company to ever really get off the ground. Why can’t we commit to a consistent subsidy for renewables over 20 or 25 years? It’s that see-saw effect, much like Roland Martin said in his blog about gasoline prices posted here a while back. And it essentially is strangling any hope of renewable energy ever coming close to competing with Big Oil.

LOOK PAST OUR NOSE
It’s the short-sighted view we have, where we don’t look past our nose to the future. We have these spurts of knee-jerk reactions when things get “bad” then fall into complacency when it evens out temporarily.

We can’t keep living like that. If we evened out the subsidies and shifted $30 billion of the oil subsidies to renewables, it would help. I believe even with fossil fuels’ head start, that shift alone, if continued consistently for 20 years, would make renewables viable and an integral part of our culture. And it would go a long way toward leveling that playing field.

Is anyone willing to give it a try?