Subsidizing the "addiction"

Sheldon Richman has a great analysis of Bush's State of the Union address, including one of it's more popularly accepted points:

He says, "America is addicted to oil, which is often imported from unstable parts of the world. [Only 11 percent comes from the Persian Gulf.] The best way to break this addiction is through technology." I don't like to see the word "addiction" to applied even to drugs because it implies passivity. So it is inappropriate for the American use of oil. The fact is that by a combination of oil's nature and U.S. government intervention, Americans use oil because it appears economically sensible to do so. It's hardly an addiction. Let's fully deregulate the economy, adopt a noninterventionist foreign policy, and internalize all costs -- and we'll see what happens. In fact, we don't know what a truly free energy and transportation industry would look like. So Bush shouldn't be trying to imagine it and bringing his vision to fruition through subsidies and whatnot. That will be a disaster, although it will make big bucks for the well-connected companies that get the contracts. He's only partly right when he says technology is the best way to end the use of oil (assuming that's really a good idea). But he left out the most important part: free, unsubsidized competition. Give someone enough taxpayer money and he will come up with a technological alternative to oil. Big deal. The real trick is to come up with an alternative that makes economic sense. The only way to know which technologies make economic sense and which do not is to let the market process play out without state regulation or benefit. In other words, no privileges for anyone. All costs internalized. Laissez faire, laissez passer.

I usually avoid both the actual address and the commentary, as both can tend to be worthless degressions. Sheldon has posted an article worth reading, though.

I didn't watch or read the address, so I'm not going to comment. However, Rough Ol' Boy has a great analysis of the history of the State of the Union address that puts it's purpose in perspective that's worth your attention.