Main Point

The main point the authors of the article are trying make, is that the US is wasting billions of dollars because of the inefficient economic strategy that is in place. The authors point out that by changing the current (1993) military based economic policy to energy and environmental policy “will ultimately enhance the nations economic performance by putting tens, even hundreds, of billions of saved dollars per year into the hands of private citizens and business.”

Summary

After the Berlin Wall fell the US no longer needs a military oriented economic strategy, but one that incorporates both the current energy and environmental concerns of the present. During the 1950’s the US worked with a surplus of energy sources, but then began a trend of shifting policies from energy to military, which led to increasing imported energy sources and the oil shock of 1973. Starting with the Carter administration and continuing through Regan and onto the Bush administration was an increase in military policies and a reduction of R&D for efficient energy sources. Yet if the US was to continue to invest in an energy policy, new technologies would reduce costs, save money, which could then be reinvested into the economy that would reduce the deficit and promote the manufacturing sector and creating more jobs, all improving the economy.

According to Romm and Lovins the switch from a military based economic policy to energy based economic policy is rather quite simple. If the US were to spend the time and effort in new energy technology, they would be able to achieve this change. The authors argue that the new technologies would reduce costs not only to consumers but businesses as well. The three main area of energy use that are inefficient and not cost effective are transportation, electricity, and alternative energy sources such as solar power. Then the more cost efficient the utilities could invest the saving in new capital. One example of this electric efficiency is in Sweden, where they found that by doubling electric efficiency, increased GNP by 54%, and cut electric costs by nearly $1 billion. Another benefit of using efficient energy sources is that they are helpful in protecting the environment, such as controlling carbon dioxide level and the depletion of the ozone layer. Since 1973 the 3M company has eliminated more than 500,000 tons of waste and pollutants, saving $482 million; another $650 million saved by conserving energy. So by reallocating military spending and by focusing on an energy, economic, and environmental policies the US can save money, stop its dependency on foreign oil, save the environment, create new higher paying jobs and put more money in the hands of consumers and businesses.