Media pundits still haven’t learned their lesson about the law of unintended consequences when it comes to government mandating energy sources.
Federally mandated ethanol production has been blamed for food price inflation, which has led to shortages and in some countries, even food riots. However, “AOL Money Coach” Hilary Kramer hasn’t grasped that.
“Absolutely right,” Kramer said on CNN’s May 5 “Issue #1.” “That’s why Barack Obama with a $150 billion package that he wants to jumpstart an entire industry alternative energy and clean technology could be very valuable, especially matching that up with legislation to force the use of alternative energy.”
Obama’s Web site detailed the $150 billion government expenditure over 10 years:
“Invest $150 Billion over 10 Years in Clean Energy: Obama will invest $150 billion over 10 years to advance the next generation of biofuels and fuel infrastructure, accelerate the commercialization of plug-in hybrids, promote development of commercial-scale renewable energy, invest in low-emissions coal plants, and begin the transition to a new digital electricity grid. A principal focus of this fund will be devoted to ensuring that technologies that are developed in the
Nothing detailed in Obama’s plan addresses how that would cause gas prices to decrease – at least in the short-term.
Kramer failed to note another possible government solution to high gas prices – expand the oil supply by opening more areas exploration and expanding refining capacity.
The American Energy Production Act introduced on May 1 by Senate Republicans would open the