Candidate Kerry was ruthlessly (and correctly) criticized for being on both sides of most issues. President Bush, instead of running that way, has arguably governed from both sides of the issues. For libertarians, his faux-Reagan patina tarnished early with the 'No Child Not a Federal Project Act'.
The pattern is clear enough that libertarians know better than to watch a Bush of the union message without an air sickness bag. Of course there is a bipolar character to these edge-of-the-seat yawns in which the forgotten proposal to privatize social security revealed a principled president with the temerity to challenge a reactionary constituency that can be stampeded in defense of the status quo (see, e.g. Hilarycare - this phenomenon works in both directions).
But this year's state of the union address was the largest rhetorical reversal for this President as he declared "America is addicted to oil".
It is probably hyperbolic to argue that this is a more quintessential about face than the President's love affair with nation building. Still, for a President who was quietly brave (some might argue cowardly outspoken) regarding the importance of eliminating regulatory production impediments as a way of allowing energy markets to function without government intervention -- while still serving the goal of reducing strategic tensions associated with the flow of energy -- this was a major major reversal.
Washington, DC has accomplished its lemming magical act once more, as a committed 'minarchist' vanishes from the national stage -- stepping into that black box on the Potomac and coming out as yet another government-knows-bester. This inveterate Texan energy supply-sider, frustrated at every turn by envrionmental lunatics, would be bull moosers amongst his own caucus, and his own ambivalance on government subsides for alternatives, has turned into a government hand on the scale, winner picking, demand management, market gaming, public choice stamped, cartelizing, hydrogen [or the flavor of the day] economy President -- generally speaking the antithesis of market management of supply and demand.
It can be fairly argued that this is but a rhetorical reversal, "but a flesh wound" as the Monty Python troop's black knight maintained after having all its limbs cut off. All Bush has proposed in the state of the union is more government subsidies for alternatives, the same strategy he has been offering as palliative to opponents of ramping up traditional US energy production from the get go. Like most of the President's programs, his opponents quickly accepted his olive branches and then cut down the tree. Domestic energy production remains in a strait jacket, while 'targeted tax cuts', such as the hybrid car credit that Bush lampooned while campaigning, are now the centerpiece of his energy policy. Remember this?
"'How many of you own hybrid electric gasoline engine vehicles? If you look under there, you'll see that's one of the criteria necessary to receive tax relief. So when he talks about targeted tax relief that's pretty darn targeted." Bush quoted in the Chicago Sun-Times 10/29/00.
Of course Bush is an easy target. Not only is his adminstration filled with the inconsistencies and vagaries of trying to please multiple incompatible constituencies (within his own coalition as much as within the nation as a whole), but the only principle maintained continuously by his adminstration is that governing is never having to say you're wrong. Thus his gaffes hang out there like comedic Swords of Damocles, easy targets for his critics of whatever political stripes.
But there are some fundamental conundrums in the libertarian ideal energy policy which ought to confronted. Steve MIlloy of junkscience.com, perhaps one of the most solid abstract thinkers on regulatory and tax policy in the energy markets has just such a libertarian deconstruction of energy subsidies currently posted at Fox News. But like many such undertakings, it tends to minimize economic benefits to individuals from conservation adoptions, and totally avoids consequentialist discussions of energy pricing as a whole related to demand. In a market where marginal prices fluctuate radically around a few percent of production above or below demand, it is difficult to limit discussion of the iterative qualities of demand management. Whether accplished through market signals or government intervention, lower demand not only lowers the quantity purchased but potentially the price of the commodity being purchased (Think chicken in Eygpt right at the moment).
This isn't to make out a case that government is the best mathematician to work out this equation, but how can we use economic consequentialist arguments as the linchpin of concern regarding the Kyoto protocol, and then sit idly by as the price of oil skyrockets and celebrate the market doing what it ought to do. If a 50% carbon tax on oil would cause dislocations in the economy, a 50% price increase has to do the same thing. As lousy a job as our government could be counted on to do with the 'btu taxes', many of the 'market btu taxes' (certainly a heretical oxymoron, but used for emphasis) are currently flowing to regimes that are funding the campaign to end western civilization, to snuff out liberalism.
Is the road to consequentialsim the slippery slope? After all, Friedman's favoring of vouchers, while better than the existing order of public schools implies an embrace of the consequentialist belief in public education. But isn't oil the fundamental example of where consequentialism ought to enter the libertarian philosophy: If market forces are funding those who would destroy the free market shouldn't such considerations guide our market behavoir?
In fact, such considerations do guide free participants in the market (think of the great bank BB&T that will not lend money for projects employing eminent domain). But should free market proponents encourage such consequentialist thinking, at least to the extent that it should be employed for the preservation of free markets?
At least this 'externality' ought to be addressed by our literary libertarian lights, like Steve Milloy. For instance, the morals of commerce with China are tough but this debate is regularly joined in libertarian circles -- if generally resolved in favor of trade. But, if the notion in defense of such commerce is the very spread of liberalism (as well as the classic theory of furthering our own advantange), there seems no cogent argument that the longer history of sending oil money to the middle east will have any potentially enlightening effect, but in fact funds direct opposition to the liberal order(alright, another oxymoron) around the world.
What is a libertarian to do? I'll have much more to say on the subject, but I seriously ask you as well.