
The Chevrolet Volt
Republicans are doing a lot right--holding firm in Iraq, taking the war to the terrorists, fighting tax increases, finally halting the big federal spending spree--but they are failing to heed an obvious issue that would resonate strongly with the public and address an urgent need. The Administration and the Republican candidates for president seem to be tone-deaf on the technology that will diminish America's oil addiction, the plug-in hybrid car. This one development can do more to reduce our dependence on foreign oil than anything else that is even close to available. It also will help prevent the country's slide into long term economic stagnation.
Democrats haven't done any better on this issue, until now. They are wising up, however.
Today the market dropped 360 points and oil shot up briefly to $98 a barrel. The United States has a housing credit crunch that is clearly hurting our economy, but the dollar is getting battered more seriously because we cannot pay our oil bills. We are now in a vicious cycle, where the falling dollar means higher oil prices in this country, and that means a weakening economy and further drops in the dollar.
Why is the "Loonie", Canada's dollar, so strong against the U.S. dollar today? After all, Canada's economy is linked tightly to ours and Canadians certainly aren't more productive than Americans. Our Discovery Senior Fellow Steve Marshall points out the answer: Canada is producing all the oil it needs and has plenty left over to export. It makes money on oil.
Russians, for the same reason, are hugely prosperous these days (relative to their past): they have oil. Saudi Arabia and the Gulf States are booming like the good old days. And we are paying for it. Hundreds of billions of dollars are moving from here to there. We also are indirectly propping up the Chavez dictatorship in Venezuela. Even though Chavez' socialism is grotesquely inefficient, El Jefe still gets more money out of what oil does get produced.
Expansion in China and India are identified in some quarters as the reason for the oil squeeze here. But that is only indirectly responsible for our plight. The reason we are in such bad shape on oil is that we are using too much of it relative to what we produce. The fastest way to reduce the usage is to conserve and the way to do that without great pain is to introduce plug in hybrid vehicles ("PHEVs"). These cars not only will enjoy the savings of standard hybrids, but also will be able to use non-peak electric power to greatly reduce effective use of gas.
GM is a few months away from testable PHEVs. Toyota, the pioneer in hybrids, has stalled, it seems, and won't have a vehicle ready for about another year. GM apparently has access to a faster battery developer for the car that is to be called the "Volt". It could be tested in the spring and made available, if pushed, a year from now.
Discovery Institute's Cascadia Center has been the leading think tank promoting PHEVs for years now. We have held three national conferences on the topic, featuring our own people and such outside experts as James Woolsey, the former CIA Director. Last year at this time we pleaded with the White House to take the public political lead on this issue, but the subject evidently was not a high priority.
In December '06 we suggested that the President use his State of the Union address in January to announce that the Administration would place an order for 100,000 PHEVs for its federal fleet purchases as soon as the products were available. That would have helped stimulate the market and assure early production. Instead, the day after a State of the Union address that barely mentioned the issue the President issued a throw-away Executive Order that indicated a desire to consider PHEVs at such time as they might become available. That was a mere token gesture deservedly ignored by the media. Absent was a sense of urgency and recognition that PHEVs might relate seriously to a worsening fuel problem in America, not to mention the growing political stir about air pollution and global warming.
Why the failure to grasp this issue? Was the Administration afraid that Toyota, a foreign company, would wind up with the Federal contract if the fleet purchase pledge was made too soon? Did they want to give Detroit time to catch up? If any of that is true, it is a nice display of nationalism that comes at the price of America's overall economic health. Or was the White House policy bureaucracy just too sluggish to move efficiently on an issue like this? President Bush should have been the leader on PHEVs. He didn't even need Congressional co-operation to move ahead. But, for all his other accomplishements, he not a leader on this at all.
Meanwhile, a bi-partisan field of Senators and a couple of House members did speak out, including Rep. Jay Inslee, Washington Democrat, who has written a book on the topic, Apollo's Fire, Rep. Dave Reichert, Senators Sam Brownback of Kansas, Joe Lieberman of Connecticut, Norman Colman of Minnesota, Maria Cantwell of Washington, Orrin Hatch of Utah and Barack Obama of Illinois. Several have been smart enough to engage the help of experts such as Woolsey. Brownback, who should have been courageous and shrewd enough to make this a prominent campaign issue in his GOP presidential bid, dropped the subject and let his leadership role wither. Maybe he thought that ethanol was a better horse to ride. If so, a lot of good that did him; he's now a former candidate.
But now comes Hillary Clinton, stealing Obama's issue (he claims), but who cares? The rest of the energy program she announced on Monday is greatly flawed. But again, on this part of it, if she takes the lead, she leads. She is taking up an issue the Republican field is missing. Hillary has the platform to make this a national priority issue at last.