Letter: Economic stimulus offers solutions

11/25/08 - To the Cigar,President-elect Obama is in the process of outlining an economic recovery plan with the purpose of creating 2.5 million new jobs in America. His staff has not yet released in which sectors the jobs will be created, though it has been hinted energy will be a main focus.

With this impending package they will look to provide a backbone for the economy and inject large amounts of new money into the American system.

The main portion of the economic stimulus plan must begin to build the infrastructure needed for a completely different energy source. A long-term renewable energy that allows us to operate the American economy free of foreign oil. This year we imported approximately 500 billion dollars worth of oil; 500 billion U.S. dollars that are being sent to the Middle East, Russia, Venezuela, and other foreign nations. By beginning to build a new infrastructure we can gradually start keeping as much of the 500 billion dollars as possible in our economy. Trade is important, but the United States cannot remain a victim to OPEC's whim of cutting production, or a Global crisis crippling our supply of Oil. This move for new technology through the stimulus package must be made with the foresight of energy independence.

The government must take action now to create the basic essentials for a new energy source. Hydrogen would be the ideal resource to start with. We would see the substitution of Hydrogen as the primary fuel source becoming a long term economic stimulator continuing to grow upon itself over the next 30 years. Private investment in the industry also would be encouraged and needed over the long run for hydrogen fuel to be successful.

Hydrogen is a young technology but already we are seeing it implemented sporadically across the United States and Europe. The ability to turn Hydrogen into fuel is a realistic possibility and it would provide the easiest transition from gas. This transition has high initial costs preventing investment from the private sector. If the government were to reduce the initial costs associated with hydrogen fuel through this stimulus plan. We could potentially see investment from the private sector becoming much more lucrative as consumer demand would also be prevalent.

To create immediate jobs we see the U.S. government stepping in to build the essentials needed for hydrogen becoming an alternative to gas. Hydrogen gradually becoming our primary energy source over the next 20 to 30 years as gas becomes more and more expensive. Fill stations, production plants, pipelines all beginning to be built now. Government funded with extreme oversight, immediately spiking government spending and employing hundreds of thousands. This mass employment and building would model what F.D.R did with the new deal during the great depression.

We have the industry and workers available to create hydrogen cars as well. With government subsidies and a deal worked into a government bailout plan we could see GM and other struggling U.S. car companies begin to perfect and produce hydrogen based in car's in the next five to 10 years. Scaling back outdated gas powered car production over the same time. These private firms acting in accordance to the terms stipulated in a bail out would hopefully work towards making hydrogen cars attractive for consumers to buy. We would initially see consumers faced with a decision of low cost gas powered cars; with the trade off of expensive costs to run (assuming oil climbs near $150 a barrel again). Or a relatively high cost hydrogen powered car with very low costs to run and zero emissions. Government could also influence consumer choice by offering tax breaks like they do with current hybrid cars. These tax breaks would bridge the gap in initial costs and influence the market towards hydrogen.

This economic stimulus package would ensure America would be on a track away from foreign oil and towards energy independence. By investing in American workers and American technology we would see sustained growth over the long run. We must plan for our future today, what better time is there to invest in a new energy? Gas prices again will break $4.00 a gallon and consumer spending will be crippled much like it was during the summer months. By showing the world we are committed to American energy we could set a new precedent. At the same time creating employment in all sectors of our economy as a project such as this, would reach the complete range of the work force. This sort of employment is needed to ensure a full and sustained economic recovery.

Billy McDonald