Wednesday, August 6, 2008

A Boon to Pickens, the Free Market, and American Pride

Gal Luft, the executive director of the Institute for the Analysis of Global Security, lambasted oil man T. Boone Pickens in the LA Times today. While Luft may have made some valid points in his critique of Pickens' proposal, his disparaging of Pickens, the man, for his pursuit of profit is discouraging. In a recent interview, a reporter asked Pickens about the allegation that he is trying to pursue a profit, to which he essentially answered "Of course!"

Since when has "profit" become anathema to the American mind and a curse word in the American vocabulary? We have a free-market economy, where success in productivity and innovation is rewarded. The American economy is rooted in the idea that there is no greater incentive for individual and corporate success than a potential profit. If a person becomes a mere cog in a nationalized economic machine, that person performs their function and nothing else. Yet if a person is allowed to run her own machine, maintain it as she sees fit, and even create a new machine, then she will strive do do so.

Boeing and Northrop Grumman are competing to build a new tanker for the Air Force. The winner of that competition will earn a government contract, which will provide better equipment for the defense of our country and a good deal of money for a private corporation. While our government squabbles over how best to punish corporations and regulate our way into a more sound energy policy, they should look to people like T. Boone Pickens for inspiration. He represents old-school American ingenuity. In his proposal, Americans are presented with the mentality that made American great--one which seeks to harness the power of the free-market to create and make a profit.

If the Pickens Plan is not one's cup of tea, new proposals should be put forth by the private sector, with the promise of government awards for success. I would love to see the federal government present Pickens with a monetary reward for his work on the issue and persistence in bringing it before the public. The government should offer free-market incentives and avoid regulation and taxation, lest their incompetence erode the foundations of our economy. Let the competition begin! Gal Luft would have a fit, but the economy that is the pride of America and the beacon for the world will breathe a sigh of relief.

1 comment:

Anonymous said...

You should see Gal Luft speak in an OnPoint interview (which I'm having trouble tagging).

I don't remember exactly what language he used regarding Pickens' character in his LA Times piece, but Luft has his reasons. It would be insane to say that an 80 year old billionaire is playing the US for cash. However, that doesn't mean his plan is right. Luft is very much for competition, so much so that he regards Pickens' proposal that the US mandate one automotive fuel as the winner as a terrible idea. Luft supports Flex Fuel Plug-in hybrids, which he says is worthy of a government bicep flex because it unleashes the power of American competition rather than squashing it.

I give the benefit to Pickens that he is a good man, and I'm sure Luft didn't mean anything too personal.
But the fact that Pickens has put his reputation and $$ on the line in order to ask the US government to stamp his way as THE GOVERNMENT SANCTIONED SOLUTION is not the kind of competition-loving Americanism that made this country great.

All those watching the energy security situation are grateful to Pickens for bringing this to the national stage, but he should really be listening to Luft and his Washington-based energy security think tank on this one.