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I would like to raise some issues about the extreme
conservation measures that would be required by a sudden, severe and
prolonged supply interruption in liquid fuels. My reference crisis
involves the sudden reduction of liquid fuel use in the U.S. to one
quarter its present value and lasts until a crash program of
production of synthetic fuels, increased recovery and substitution by
nuclear and coal-generated electricity restores equilibrium between
demand and the new cost of production. The reason for supposing
liquid fuels to be reduced to one quarter is that we now import half
our liquid fuels, and I assume this production lost. I further
suppose that during the crisis we export to our worse off allies half
of the liquid fuels we produce including half of the new production
of synthetics as it comes on line. I suppose we export half, because
that does our allies half the maximum good we could do; we could not
do qualitatively better. Such a crisis would disrupt our
economy and many workers could not continue their jobs. Conversely,
vast manpower, e.g., automobile workers and college students, would
be available to build synthetic fuel production facilities, to
convert plants to coal and finish the nuclear backlog. The crisis
would probably be as disruptive as World War II to our economy and
last as long, i.e., four years. Ending the crisis in four
years by a "production miracle" requires that, our mobilization for
production be as prompt and smooth as our World War II mobilization.
This requires that our political energies go mainly into enacting
adequate measures for the mobilization and not into fighting each
other. This will be difficult but not impossible. In 1973,
each group in society continued to say what it had been saying all
along - only louder. Here are some considerations relating to the
emergency conservation program. 1. The initial crisis will
hit different parts of the country differently. Most oil-heated
houses may have to be temporarily closed up, children and other non-
workers evacuated to the South and houses near work places
temporarily converted to rooming houses. 2. Some ways of
implementing the required combination of rationing and pricing would
exacerbate internal conflicts, and others would mobilize effort to
restore normality. ↓-The plan-↓should be based on whatever
understanding we can acquire about which is which. 3.
Acceptance of hardship requires that restoration of normality be the
perceived good. 4. The level of hardship might be more or
less than that endured by American civilians in World War II. It
would not approach that endured by British, Japanese, German
civilians and would be nowhere near that endured in Russia or
occupied Europe. 5. It would be good if we could prepare a
contingency plan that Congress could vote on now. However, this
seems unlikely for two reasons; First, we don't know
what the crisis will be like. On the one hand it may be
less severe or prolonged and on the other hand, it may
involve additional complications like war. Second,
Congress could not pay the political costs, including the
breaking of longstanding coalitions and forming new ones, in order
to decide hypothetical questions. In particular it would require
moderates on both sides of present economic and environmental issues
to break with the extremists who provide their best troops in order
to reach a compromise. The political blood spilled to solve a
presently hypothetical issue would be real blood not hypothetical.
6 Nevertheless, some political prepaaration may be possible.
Perhaps we could agree on a plan with two undecided parameters. One
parameter would be on the liberal--conservative political dimension,
e.g., the amount of a tax on profits or the magnitude of an income
equalization measure. The second parameter would be on the
environment vs. growth axis, e.g., the amount of compromise with
environmental standards. Agrement on the parametrized plan might be
obtained now, because, for example, a conservative would be pleased
with the plan if only the liberal-conservative panel came out "right"
enough, and the liberal would like the plan if it came out
sufficiently to the "left." When the crisis came, Congress
would fight it out according to the strength at the time of the
contending views and set the values of the parameters. The alliances
would be broken and reformed and the political blood shed, but less
time would be required than if every detail had to be fought out
along liberal-conservative and environment-growth dimensions.
This idea may be hopelessly naive in its present form, but perhaps
some elements of it will be found usable.
John McCarthy MAIN POINTS 1. Which measures generate internal
cooperation and which conflict. 2. A plan with open political or
ideological parameters.