A modest energy program proposal: Pruises for everyone

At 50 mpg (almost double the new CAFE standards for all American vehicle fleets), would spending $400 billion over 10 years to get everyone a Pruis be a good economic and green stimulus? 

This is from the L.A. Times automotive writer, so don't expect any full scale lifecycle analysis, but you will get the scoop on the new 2010 model.

P.S. The new CAFE standards are a bit underwhelming, coming in 1 mpg less than what automakers already delivered for cars in 2007 and 1 mpg over what they did for light trucks.

And nothing of value was lost

The U.S. House passed the proposed economic stimulus yesterday, rife with tax cuts to appease Republican representatives despite their proven smaller impact on the economy.  And what did this bit of conciliation buy the President and the Democrats?

Zero Republican votes.

A proof: government spending is superior to tax cuts

There's been a great deal of discussion among the nation's economists about the coming federal economic stimulus package, mostly centered around the relative economic impact of tax cuts versus pure government spending.  I think I can simplify this for them.

You're one of millions of Americans who are either unemployed, underemployed, or worried about your job.  Do you want a tax cut or a job?

QED

Recession and Stimulus 101

Sometimes I just like to let the experts have a say on how the Obama administration should handle this economic crisis.

Step 1: Give money to states to prevent severe cutbacks in state spending.  Otherwise, any federal stimulus package is being offset by "50 Herbert Hoovers."

Step 2: Focus on government spending, rather than tax cuts or private spending.  Individuals are particularly likely in a recession to either save or pay down credit, which has no stimulus effect.  But every dollar of government spending is a dollar of economic stimulus.

A "seventh generation" look at bailouts

Tom Friedman has very cogent thoughts on bailouts and the economic stimulus these days.  On the proposed car company bailout:

You want my tax dollars? Then I want to see the precise production plans and timetables for the hybridization of all your cars and trucks within 36 months...because nothing would both improve mileage and emissions more — and also stimulate a whole new 21st-century, job-creating industry: batteries.

For energy policy, hit the supply and demand sides:

It makes no sense to spend money on green infrastructure — or a bailout of Detroit aimed at stimulating production of more fuel-efficient cars — if it is not combined with a tax on carbon that would actually change consumer buying behavior.

Many people will tell Mr. Obama that taxing carbon or gasoline now is a “nonstarter.” Wrong. It is the only starter. It is the game-changer. If you want to know where postponing it has gotten us, visit Detroit. No carbon tax or increased gasoline tax meant that every time the price of gasoline went down to $1 or $2 a gallon, consumers went back to buying gas guzzlers.  [emphasis mine]

Exactly.  If we're intending to shift to renewble energy and reduced carbon emissions permanently, there's no time to do so like the present.

Long term fiscal stimulus: a New Deal

Renewable energy and energy efficiency could be the foundation for long term economic sustainability.  And it could provide an outlet for government to provide substantial economic stimulus in the short term.