All things considered, Alan Greenspan (and perhaps William Simon) are to be congratulated in what little cheer there is in the President's energy program. The salient point is deregulation of gas and oil
¾ even if the tariffs, excises and punitive taxes will undo all the good it could have done, for the money will flow into unproductive government programs instead of providing capital for badly needed energy investments. Taxes and tariffs will curb demand; they won't do a thing for the supply.But except for tax cuts and other vote-pleasing proposals, the present Congress is unlikely to go along. Even in the case of deregulating oil by April 1 (which can be done by executive order without congressional approval), Congress is likely to slam back price controls long before the supply would increase - and with the counterweight of taxes and tariffs, it probably wouldn't.
So what is there to cheer about? The President's attempt, even if partial and feeble, to do what is right rather than what is politically expedient. He could have had Congress eating out of his hand by proposing gasoline rationing, preaching environmentalism, punishing the corporations and printing more money to pour down the same old bottomless sewer. If Congress decides to do that all the same, there is the chance that people will know whom to blame when energy and everything else runs out.
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Vol. 2, No. 6
Newsletter: Access to Energy Newsletter Archive Volume: Volume 2 Issue/No.: Vol. 2, No. 6 Date: February 01, 1975 04:18 PM (For actual publication date see newsletter.) Title: The Use of Force
Copyright © 2004 - Access to Energy Newsletter Archive
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