Showing posts with label competitiveness. Show all posts
Showing posts with label competitiveness. Show all posts

May 28, 2008

Energy Efficiency and Better Transportation

After the American Century

Energy should be a key issue of this presidential campaign. The US has had a failed energy policy under Bush. Consumption of all forms of energy has risen. Imports of oil, in particular, have burdened the economy and made the nation increasingly dependent on uncertain suppliers. Undemocratic regimes control much of the world's oil, notably in Venezuela, Nigeria, Iran, and Saudi Arabia, while one could discuss whether there really is democracy in Russia or Iraq. Americans are pumping billions of dollars into these economies every time they tank up.

The only solution seriously advanced by the Bush Administration has been that of substituting alcohol for some of that gasoline. This has pleased farmers, as they can grow more corn that before and get higher prices for it, too. But the diversion of agricultural production to providing oil substitutes is not a wise choice, for world agricultural prices are rising so fast that millions of people are now on the brink of starvation.

Fortunately, there are other solutions. Unfortunately, Americans have been slow to embrace them. Least glamorous, but most effecive, is conservation. I drive a car that gets about 43 miles to the gallon, double the US average. (I should have bought one that is even more efficient.) If all Americans purchased such automobiles, their vast consumption of oil would drop by 50%. Furthermore, I have chosen to live relatively near to my place of work, so my round trip is less than 10 miles. Few Americans live that close. Better yet, the Danish government has built a comprehensive system of cycle trails, including traffic lights, that makes it safe and convenient to bike to work. It takes me no more than 20 minutes each way, while driving is only 5 to 8 minutes faster. Few places in the US have provided such an infrastructure, so Americans drive even short distances because that is often the only safe alternative when going to buy milk or a newspaper. By my rough estimate, compared to Europeans, Americans drive twice as far using cars that are only half as efficient. In short, if Americans switched to more efficient cars they would import much less oil. By reducing demand, they might also push down the price at the pump.

But buying the right kinds of cars is only the beginning. Let me be blunt. My fellow Americans, you have been squandering billions of dollars driving cars that are larger than you need. You have devoted half the land in your cities to roads, driveways, and parking lots. You have imprisoned yourselves in an inefficient and individualistic transportation system that is now choking the nation almost to death. You once had a comprehensive system of mass transit, in the form of light-rail, that existed in every major city and most towns until c. 1930. You have abandoned that system in most places and almost destroyed the passenger railroad network as well. You should be demanding its reconstruction.

In 2008 it is long past time for a change. It is time to demand from presidential candidates the construction of high-speed railroads, of the sort long used successfully in Japan and France. These trains routinely go 200 miles an hour - or faster. It is 190 miles from Boston to New York, 225 miles from New York to Washington. Each trip would be about an hour on such a train. It could be possible to go from Chicago to Minneapolis in about two hours, or from St. Louis to Chicago even less. Flying should be for distances of at least 500 miles. It is idiotic to drive or to fly shorter distances, because the time and hassle needed to go to the airport, get through all the security arrangements, board, fly, disembark, collect bags and then travel to the city center, is hours longer than the time needed to take a good train for the same distance. Likewise, it is foolish to drive several hundred miles because it is tiring, expensive, and environmentally damaging. On the train (in Europe) you can sleep, relax, read a book, or surf the net.

In 2008 it is time to wake up to the pleasures of not driving and to discover the relief of not standing in lines at airports. Instead of bankrolling autocratic regimes that happen to have oil supplies, instead of pumping out exhaust and causing global warming, instead of spending billions of dollars in Iraq, ostensibly to build democracy, but also to protect access to oil, it is time to rebuild the US into a more efficient and competitive nation that does not need so much oil in the first place.

December 07, 2007

Problems with maintaining American Hegemony

The phrase "The American Century" accurately suggests the rise to dominance of the United States between 1900 and 2000. It is unlikely that this dominance can continue long into the new century, however. There are two sets of arguments to support this prediction: those that have to do with foreign affairs and those which are domestic.

The United States was the world's greatest military power at the dawn of the new millennium and the predominance of English as the language of science, the Internet, and business, ensures a central place to the United States in the new century. Yet, its economy no longer produces one third of the world's goods as it did in c. 1920. The greatest opportunities for growth lie in Asia, where China and India each have populations four times as large as the United States. Both are nuclear powers, and China has an ambitious space program with the goal of a manned mission to the moon. The "tiger" economies of nations such as South Korea, Taiwan, and Malaysia have already shown that Japan is by no means the only Asian nation capable of mastering advanced technologies and competing in the global marketplace. At the same time, the launch of the Euro currency and the expansion of the European Union to include new members has created a counterweight to the NAFTA free-trade zone of the U.S., Mexico, and Canada. (On the other hand, Europe's population is aging and shrinking, its labor markets are less flexible, and its taxes are higher.) The U.S. economy continues to grow, but as a percentage of the world economy it will become smaller.

Not only is the U.S. economy becoming a diminishing part of the world's economy, but also the globalization of business is eroding the centrality of the American market. In one sense, this globalization represents the triumph of American business values. Yet globalization also lessens the importance of nations, merging them into larger markets and into international organizations. Environmental problems such as global warming and energy shortages will almost certainly increase the pressure to think internationally, rather than in more narrow, national terms. Smaller countries have learned this lesson already, but it appears to be difficult for larger nations to recognize their interdependence, and hardest of all for the United States, as the last remaining superpower, to do so. Regrettably, Washington has not been a leader in reducing global air pollution, for example, and the 2000 election campaign did not result in an environmentally sensitive administration. Quite the contrary. President Bush, as a former (failed) oil entrepreneur, wanted to drill for more oil on public lands and nature reserves. His cabinet has many ties to the oil and automobile industries, but few ties to computer firms such as Microsoft or Intel. George Bush tried to think parochially in his first administration, but was forced to admit that global warming does exist halfway through his second administration.

Which brings us to some domestic reasons why the United States may slip a bit from its position of global hegemony. While the economy remains dynamic, the objects selected for development are not those best suited for the long term. The huge American investments in private automobiles and highways have created a rigid infrastructure that sprawls across a vast landscape, in contrast to other nations that have invested in high-speed trains and public transportation that concentrate the population and give them more transportation choices. In much of the United States, walking to the store is impossible. Consumers have no choice but to use their automobiles even to make the smallest purchase. Americans cannot easily change their consumption patterns to respond to rising energy costs. In the marketplaces for housing, transportation and conveniences, the majority of American consumers have ignored long-term environmental problems such as global warming, and thought too little about the energy needs of the rest of the world, while insisting on their consumption (and pollution) practices. If you want to see what the US might have done instead, visit a nation like Denmark or The Netherlands. They are also buying more cars than they used to, but in a pinch they can take public transport or bicycle. 

This Blog explores many topics, but the question of how the United States will adjust to a gradual decline of its hegemony remains a theme throughout. This is written without any pleasure at the changes described. I am, after all is said, an American, born in the middle of the American Century, witnessing the next act in the nation's history.