The Real Generation X

NY Times

December 7, 2008
OP-ED COLUMNIST

By THOMAS L. FRIEDMAN

I’ve been thinking a lot lately about Tom Brokaw’s book “The Greatest Generation,” that classic about our parents and their incredible sacrifices during World War II. What I’ve been thinking about actually is this: What book will our kids write about us? “The Greediest Generation?” “The Complacent Generation?” Or maybe: “The Subprime Generation: How My Parents Bailed Themselves Out for Their Excesses by Charging It All on My Visa Card.”

Our kids should be so much more radical than they are today. I understand why they aren’t. They’re so worried about just getting a job or paying next semester’s tuition. But we must not take their quietism as license to do whatever we want with this bailout cash. They are going to have to pay this money back. And therefore, we have an incredibly weighty obligation to make sure that we not only spend every stimulus dollar wisely but also with an eye to creating new technologies.

We not only need to bail out industries of the past but to build up industries of the future — to offer the kind of big thinking and risk-taking that transforms enormous challenges into world-changing opportunities. That is what made the Greatest Generation great. This money can’t just go to patch up our jalopies.

“Remember, this money will not be neutral,” said Andy Karsner, a former U.S. assistant secretary of energy. “We are talking about directing an unprecedented volume of cash at our housing, energy, transportation and infrastructure industries. This cash will either fortify the incumbent players and calcify the energy status quo, or it will facilitate the economic transformation we seek. The stimulus will either be white blood cells that will heal us or malignant cells that will continue to sap our strength.”

Let’s get specific. When it comes to Detroit, my views are clear: I think we should be talking about “bail,” not “bailouts,” regarding the people running the Big Three car companies and the lawmakers who mindlessly protected them for so long. Still, I do not want to see jobs destroyed. But if taxpayers are going to give Detroit money, we must not entrust the spending to people who have run their businesses into the ground.

You want my tax dollars? Then I want to see the precise production plans and timetables for the hybridization of all your cars and trucks within 36 months. I want every bailed-out car company to move to hybrid electric drive trains, because nothing would both improve mileage and emissions more — and also stimulate a whole new 21st-century, job-creating industry: batteries.

Big batteries that can store electricity for transportation and wind and solar generation are the indispensable enablers of the Energy Internet of the future. Any Detroit bailout has to serve that goal.

A major electrification of drive trains in U.S.-made vehicles “would induce explosive growth and investment in a domestic battery business,” said Karsner. Europe, Japan and China are already dominating this industry. It’s the key to clean-tech — and ultimately our national competitiveness. We can’t allow ourselves to be battery importers in the 21st century the way we were oil importers in the 20th.

The same applies to Barack Obama’s plans for a green stimulus in energy efficiency and infrastructure. It makes no sense to spend money on green infrastructure — or a bailout of Detroit aimed at stimulating production of more fuel-efficient cars — if it is not combined with a tax on carbon that would actually change consumer buying behavior.

Many people will tell Mr. Obama that taxing carbon or gasoline now is a “nonstarter.” Wrong. It is the only starter. It is the game-changer. If you want to know where postponing it has gotten us, visit Detroit. No carbon tax or increased gasoline tax meant that every time the price of gasoline went down to $1 or $2 a gallon, consumers went back to buying gas guzzlers. And Detroit just fed their addictions — so it never committed to a real energy-efficiency retooling of its fleet. R.I.P.

If Mr. Obama is going to oversee a successful infrastructure stimulus, then it has to include not only a tax on carbon — make it revenue-neutral and rebate it all by reducing payroll taxes — but also new standards that gradually require utilities and home builders in states that receive money to build dramatically more energy-efficient power plants, commercial buildings and homes. This, too, would create whole new industries.

Let us not mince words: The Obama presidency will be shaped in many ways by how it spends this stimulus. I am sure he will articulate the right goals. But if the means — the price signals, conditions and standards — that he imposes on his stimulus are not as creative, bold and tough as his goals, it will all be for naught.

In sum, our kids will remember the Obama stimulus as either the burden of their lifetime or the investment of their lifetime. Let’s hope it’s the latter. I like that book title much better.