Marketplace vs. government?
In their pure forms, both are deadly. The worst features of both have also been combined in some places, with similar results on the general population. (Plus whose “National Interest” are we talking about - yours, or mine?
It’s not really a choice - we need to try to use the best features of both, while trying to avoid their biggest dangers. Neither is Evil incarnate. Neither is The Answer.
One of the most effective (but least popular) powers a government has is its ability to raise or lower taxes. Raising US fuel taxes over a few years to achieve European fuel prices ($5-$7 a gallon), or more, would certainly lower oil consumption and cut the trade deficit. It would also truly put “market forces” to work.
In addition, reducing consumption would keep large amounts of money out of the pockets of folks who wish us no good (Iran, Venezuela’s Chavez, Russia, the list goes on and on…). Maybe, bias the tax to favor fuels that are generally easier and more efficient to refine, as well as burn (i.e. diesel fuel - more “bang for the barrel”). Don’t do what we did in the 1970’s with unleaded gas (by making leaded gas cheaper, we actually provided an incentive to poison the catalytic converter, after having forced the consumer to spend $500 more on the car - obstensively to reduce air pollution)
Apply the fuel tax increase directly toward defense spending (the direct costs of securing the energy supply, completely neglected by the current “market” - it’s subsidized out of general tax revenues, among other resources). Call it the National Defense and Patriotism Support Act (who couldn’t wave a flag at that?)
Maybe add a little for alternative fuels? Probably unnecessary at $7-$10/gallon - alternatives would be self-financing, and the market would probably find the best ones. (And, some of the “alternative fuel” subsidies we have would look even stupider than they do now). If necessary, give tax rebates for the poorer folks who really need large vehicles (but it’s a slippery slope - look at the billions in tax and price subsidies AgroMegaBusiness gets in the name of helping the “family farmer”). Improved public transport might not even need a subsidy (Maybe, with its one-person-per-rush-hour-Lexus population feeling the pinch, the richest county in the richest country in the world could even find the money in its own pockets to extend the Washington Metro system 15 miles out toward Washington Dulles Airport, after having failed since 1965 to get it subsidized by the rest of the country)
But, gas tax increases are political suicide - especially for the vast new legions of voting SUV drivers living 50 miles from where they work. To be fair, any broad based taxes are killers - even if taxes are actually lowered elsewhere (or don’t go up as much as they would have, to pay for past spending binges). People focus on the increase - especially if it’s obvious.
Increased CAFEs are politically safer, but less effective (smoke and mirrors to get the averages up, less incentive for maintained efficiency - who cares if your MPG goes down, if it doesn’t really hit your pocket?) and less efficient (bureaucracy trying to bully the market, political calculations instead of real mileage calculations). But, if anything is done, CAFEs it will probably be.
Or, we can continue to do nothing, and go along for the ride (down the long tube to Life in the 3rd World). Yeah! - That’s MUCH easier… (Worked well in the 90’s, didn’t it? Aren’t we all better off now?)