Carter's energy policy: the vital ingredient is still missing
A large consensus of energy experts and economists accepts the proposition that the abandonment of price controls is the essential ingredient of a sound energy policy; but President Carter did not propose this following the Camp David summit meetings in July. Mr. Berry says the mechanism of the marketplace, far better than government coercion and exhortation, would inhibit consumption, encourage conservation, match supply and demand, and offer private enterprise the incentives to find more oil or develop oil substitutes. He contends that until prices are freed, particularly gasoline prices, nothing will convince critics abroad that Americans mean to stop consuming more than their share of scarce energy resources. The case for decontrolling gasoline and scrapping the gas-allocation system was put to President Carter by Energy Secretary James Schlesinger backed by Secretary of the Treasury Michael Blumenthal. But Stuart Eizenstat, the President's domestic-policy adviser, resisted rapid decontrol of crude-oil prices earlier in the year and pushed for a stiffer windfall-profits tax. This, President Carter, retained as his policy. Carter's resistance to decontrol and the aspects of the allocation system are discussed, especially the inadequacy of the government as allocator. (MCW)
- OSTI ID:
- 6164881
- Journal Information:
- Fortune; (United States), Journal Name: Fortune; (United States) Vol. 100:3; ISSN FORTA
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
ALLOCATIONS
CONSUMPTION RATES
CONTROL
ENERGY POLICY
ENERGY SHORTAGES
EVALUATION
FUELS
GASOLINE
GOVERNMENT POLICIES
INDUSTRY
MARKET
NORTH AMERICA
PETROLEUM INDUSTRY
PETROLEUM PRODUCTS
PRICES
REGULATIONS
SECURITY
TAXES
USA