With the automakers in such dire straits and in search of government funding for the second time this year it is only natural to assume that the federal government will be able to dictate terms to America’s once proud industrial titans. With the changing political climate, these new terms will be driven by Barack Obama and the congressional democrats. While the Big 3 are currently asking for over $50 billion, they have already received $25 billion to retool plants for more fuel-efficient vehicles. Such a large intervention should be used by the Obama administration to expand their own agenda while at the same time saving countless American jobs in the process.
Sponsored by oilman Boone Pickens, the “Pickens Plan” made its day view during the summer as an attempt to put the idea of energy independence back at the forefront of the political discussion in America. While displaced by the collapse of the financial markets in September, the Pickens Plan can be used by the Obama administration to bring about the achievements of some of its key objectives. While the details of the Pickens Plan are not entirely clear, the plan is centered around the construction of vast wind farms in the central United States that will be used to displace Natural Gas production which will then be switched over for automobile consumption. Such a plan would be beneficial to the United States because of its vast stores of natural gas, the relative cheapness of natural gas (it costs less then a $1 per gallon to fill up a car) and the significant environmental benefits of natural gas when compared to oil.
When preparing the various legalities of the bailout, Congress should put such stipulations in the agreement so that it forces the Big 3 to significantly ramp up their efforts to produce natural gas friendly vehicles as an intermediate solution to our country’s dependence on foreign oil. Such a stipulation would help provide cover for the unpopular bailout of the Big 3 while stimulating the economy, pleasing the environmentalist lobby of the Democratic Party and by helping to wean Americans off foreign oil. Given the surplus of natural gas production coming on in the next several years, excess natural gas supply should be enough to cover the initial consumption boost that would occur with the first generation of Big 3 natural gas based cars. In addition, the initial infrastructure spending that would be needed on the part of the federal government for a nationwide roll out of a natural gas system would provide an additional direct stimulus to the economy.
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