Energy Independence and Jobs for All Americans by Wileyfoxes

I've been an engineer now for 44 years, working in American industry for 46 years and an American for 66 years.  Never have I seen so much potential in this country as exists right now, and never have I been so fearful that this potential won't be realized.  We are in the middle of an energy revolution right now and we are completely unaware of how much good it could do for this country if we are brave enough to act boldly.  Simultaneously, we are also in the middle of the wealth inequality climbing to new heights in this country and much of the world.  Changes in our fundamental structure are required to realize the potential of the energy revolution and put Americans back into meaningful employment, and yet, our Congress and other leaders are too wrapped up in getting re-elected and bashing the other side to help us realize what is there for the taking.

Fracking is producing so much natural gas that much of it is being flared.  It is more profitable to go after the oil produced by fracking than to invest in the infrastructure that it would be required to deliver the natural gas where it is needed.  It is probably smart business to do this, but is it good for America in the long haul?  I would argue no.  Cheap energy, natural gas and oil included, is still a finite resource that belongs not only to us but to our children.  Squandering their future to maximize the profits of the oil companies is not being a good steward for future generations.  And, I suspect in our rush to maximize profits, all the players are not doing fracking safely - but although important, it is not the subject of this blog.  We can bash the oil companies, but they are playing by the rules of the game that we have set up.  It is up to us to change the rules.

To change the world, bold thinking is required.  Small tweaks to the current system will do little to alter our future which increasingly looks like a world filled with the haves and the have nots.  Energy is at the core of our prosperity and the distribution of the wealth that is coming and will come from energy is fundamental to whether or not we can alter the downward spirals associated with growing wealth inequality in the world.  

Also, let me remind you that our current income tax system is so complicated that perhaps hundreds of billions of dollars are squandered each year in figuring out the code and avoiding taxes - which is quite doable for the rich who can hire lawyers to exploit the complexity of our tax code.  No one in their right mind thinks it is a positive force in America, it is simply a disaster.

So, how do we make energy use more efficient, distribute the wealth in the country more fairly (i.e., jobs for all that want to work), and get rid of the current income tax system in one bold stroke.  Replace the income tax with a carbon tax.  Not overnight, but phase it in over about ten years.  In this system, corporations and people are taxed on the same system, how much CO2 (carbon dioxide) they put into the environment, i.e., they are taxed on their carbon dioxide footprint.

The carbon tax can be revenue neutral with regard to the revenue stream that it replaces, i.e., all income taxes in America, business and personal.  But, unlike income taxes which distort the common sense use of resources, an energy tax will have the single effect of promoting the efficient use of energy, the lifeblood of our future and our children's future for millenniums.

Such a fundamental change in the way we generate public funds and how we reward efficient use of energy will result in trillions of dollars of investment as companies rush to profit from this new paradigm.  It will take the trillions sitting in company coffers and give companies a reason to be first in the new world that will be created.  There will be rewards for more efficient cars, homes, factories, industries, etc.  Renewable resources like wind and solar will be more profitable because suddenly we are taking the long view of our non-renewable energy supplies and remembering who they belongs to.   Recycling will be encouraged as the large amount of energy that it takes to strip the ground open for virgin minerals, crude oil, etc. becomes more expensive compared to reusing and recycling what we have already stripped from the ground.  Millions of workers, many of them knowledge workers, will be required to make such a big dream happen.

And yet, this approach does not have to stop the boom that can be realized from abundant natural gas. The only change, we will not so recklessly do activities that do not have longer term benefits ... we will use the energy more efficiently, more wisely.   The Energy Industry will scream that we will be uncompetitive with the world that continues to squander the non-renewable resources.  There is too answers to this fear: the first is, that we are America and we lead, we don't follow.  The second is, that if this is phased in over ten years it gives our Industry and people time to adapt to the new rules and it gives the good people all over the world a chance to join forces with us and move toward a more sane future.

What chance do I see in this happening  with our current Democratic and Republican leadership.  None, zero, no chance in hell.  It will take a third party, perhaps the Free and Equal Party headed currently by Gary Johnson to spearhead it.  Or perhaps, an uprising of Americans that realize how important it is to change the game if we want a future for our children.  Of course, a lot of discourse has to go into how the revenues collected from an energy tax are best to be used, but we need that discussion even with the current system that is spiraling downward as Congress bickers.

For the moment, if you want to dream the BIG ENERGY DREAM with me, share this with your friends. If you don't think it is important, do nothing, or even better share with me your DREAM of changing the game.  But, please don't tell me you believe in business as usual.