The Energy Answer

A comprehensive answer to, among other things, an inconvenient truth.

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Location: Warren, Rhode Island, United States

In 1979 war broke out in the Middle East. At that time I was introduced to an idea that would solve that problem and worked to get it off the ground. 11 years later in 1990 war broke out in the Middle East and I passed out pamphlets promoting this solution. 11 years later in 2001 war broke out in the Middle East and since then I have been delivering a talk promoting an idea that will end this cycle of nonsense. The purpose of this Blog is to promote this idea in a different forum. I practice primary care medicine full time in Providence Rhode Island. I have no political affiliations and engage in these issues out of my own personal interest. If you have a group that you feel would be interested in hearing the talk on which this blog is based you can contact me at geoffberg@pol.net.

Sunday, November 16, 2008

The one minute summary

This is a one minute summary of everything else on this blog.

Give every man woman and child in America $500 in exchange for raising the tax on gasoline $1/gallon. At the end of one year the tax is raised to $2/gallon and each person gets $1000 plus or minus the difference between the tax and the rebate of the first year so that not a penny extra tax is collected or a penny extra rebate is paid out. With such a plan you take a huge leap forward on the road to oil independence at no net cost to the consumer. As you suggest the tax is COLAed so that its impact is not diminished by inflation.

The day such legislation is passed oil prices drop because the public would be saying we are finally going to get serious about our addiction to oil. The price would continue to drop because of the effect such a tax would have on demand. After 6 months when the price of oil is below $60/barrel tax oil at $10/barrel. If oil rises above $70/barrel the tax is put on hold. This ceiling however would also be COLAed so it would drift up with time. While consumers will be paying this tax it is part of the mechanism that will keep oil from once again going back to $100+/barrel so essentially, OPEC would be paying the bill. With that $50 to $70 billion/year we build a 21st century power grid, help American car manufacturers to retool to build plug-in hybrid carbon fiber cars that get 75 + mpg, put money into renewable energy research, and rebuild our infrastructure with emphasis on public transportation.

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