The Economy: Back to 1979?
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19/May/2008 10:02AM

Pop quiz for all you political junkies out there: Who said this?

"Our excessive dependence on OPEC has already taken a tremendous toll on our economy and people.… It's a cause of the increased inflation and unemployment we now face. This intolerable dependence on foreign oil threatens our economic independence and the very security of our nation. The energy crisis is real. It is worldwide. It is a clear and present danger to our nation. These are facts and we simply must face them."

Was it President George W. Bush? John McCain? Barack Obama? Hillary Clinton?

Well, get out your bell-bottoms—or at least that cardigan sweater—if you guessed President Jimmy Carter. On July 15, 1979, the 39th President made these remarks sitting in front of a fireplace dressed in a cardigan. The fireside chat later became known as the "malaise" speech, although he never actually used the word. However, he did talk about a crisis of confidence:

"It is a crisis that strikes at the very heart and soul and spirit of our national will. We can see this crisis in the growing doubt about the meaning of our own lives and in the loss of a unity of purpose for our nation."

No Way Around Sacrifice

What would solve that crisis of confidence? What the philosopher William James called the "moral equivalent of war": the goal of energy independence. The nation, according to Carter, needed to make "the most massive peacetime commitment of funds and resources" and to "mobilize American determination and ability to win the energy war." Carter said he could "not promise that this struggle for freedom will be easy" and stated forcefully that there was "simply no way to avoid sacrifice." Whew!

Several aspects of Carter's speech stand out. First, his florid language highlights how different today is from 1979. Americans are paying through the nose for gasoline, but there are no gas lines. We all complain about the high cost of energy, but it's mostly measured in terms of squeezed household budgets—not in a loss of national will. Being smart about energy usage isn't an act of patriotism, it's seen as common sense personal finance.

Yes, some politicians are lobbying for the return of the windfall profits tax on oil companies that Carter called for in the speech, but there's little groundswell of support three decades later. Even proposals for a gasoline-tax holiday can't get much support.

Still Pursuing Energy Independence

To be sure, the language of war and sacrifice is commonplace now in the years following September 11. But it's directed at the occupations in Iraq and Afghanistan, where soldiers (and their families) are taking real risks and making real sacrifices.

Still, as the old saying goes, history may not repeat itself but it frequently rhymes. For instance, it was during this speech that Carter announced the creation of the Energy Dept., which quickly evolved into a massive, hidebound bureaucracy. And it was after September 11 that President Bush created another giant, dysfunctional bureaucracy, the Homeland Security Dept.

It's also striking how much hasn't changed in three decades. Politicians are still calling for "energy independence" even though the economy is now more dependent on foreign oil than ever—certainly much more than in 1979. The economy remains vulnerable to the price manipulations of OPEC nations and other oil producers.

And Carter's desire for the creation of alternative energies—"from coal, from oil shale, from plant products for gasohol, from unconventional gas, from the sun"—still resonates. (Although coal is less popular now, thanks to concerns about global warming.)

And while "malaise" seems to be off-limits for politicians and commentators alike, the national mood does appear to be unusually sour in a crucial election year. You can't turn on cable TV without hitting on a show worried about cultural decline and rampant individualism.




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