Bush: The New McCain

Remember when John McCain transformed overnight into a finance reform crusader once he was denounced in the media as the only Republican member of the Keating Five?

History is about to repeat itself in an even more farcical way:

Bush’s declaration that the U.S. is addicted to oil is another step toward demonizing the oil industry, in a repeat of what happened to the tobacco industry in the 1990s. The tobacco companies are now so heavily taxed and regulated that they have almost become an arm of the government. Bush intends for no such thing to happen to the oil sector, but as Bill Clinton learned after repeatedly saying he “would end welfare as we know it” without quite meaning it, words have consequences.

The word “addicted,” of course, is morally loaded, implying an unhealthy and irrational dependence. But since oil provides the cheapest and most efficient way to power automobiles, our dependence on it is natural and sensible — the very opposite of an addiction. Bush is the James Frey of energy policy, exaggerating the negative to play to an important market segment — in Bush’s case, the mushy middle of American politics primed to believe the worst about Big Oil.

Bush isn’t proposing any far-reaching proposals to deal with this newfound addiction. President Clinton resorted to microinitiatives — school uniforms, teenage curfews, etc. — when he was in a political tight-spot. President Bush is resorting to microindustrial policy. A few billion dollars here and there on developing fuel alternatives — and also on funding scientific research and education — and everyone can feel good that the federal government is “doing something,” while members of Congress shove the money out the door and energy interests gobble it up.

Bush’s new Advanced Energy Initiative, which is charged with developing better batteries for electric cars and figuring out how to make fuel from wood chips, is redolent of all the past federal initiatives to find alternatives to oil and to gas-powered cars. Who can forget the glories of President Nixon’s Project Independence? Or Carter’s Synthetic Fuels Corporation? Or the first Bush’s U.S. Advanced Battery Consortium? Or Clinton’s Partnership for New Generation Vehicles?

They all failed. So far, the $10 billion spent since 2001 on trying to develop alternative fuels that Bush bragged about in his speech has also produced nothing. “That’s scarcely an advertisement for even more lavish subsidies,” commented energy expert Jerry Taylor of the Cato Institute. If there are commercially viable energy alternatives, the market will discover them without the clumsy guiding hand of government. Ethanol, the corn-based, government-subsidized fuel, has long been a favorite alternative, but still doesn’t make economic sense. As many industrial-policy programs do, the subsidies have become chiefly a favor to an important political constituency — midwest farmers, especially those who vote in the Iowa caucuses.

For those inclined to believe that Bush's new energy policy will be a stick in the eye to Iran and Saudi Arabia, you might want to note that the biggest oil supplier to the United States is Canada.

This smacks of Bush trying to bury criticism of his oil industry past. I think he's greatly overestimated the appeal of living in a wilderness shack to the vast majority of Americans.