Winning Elections with Affordable Energy

Introduction

Election season is a time when politicians put forward new ideas to improve the lives of their constituents. This year, the focus is on the American economy, which is perceived differently depending on who you ask. The presidential candidates have proposed economic policies that have been met with approval from voters but skepticism from economists.

The Gap Between Experts and Voters

A recent Wall Street Journal poll highlights the significant gap between experts and the general public when it comes to economic policy. The poll asked 750 registered voters and 39 top academic experts from the University of Chicago’s Clark Center about economic policies such as tax-free tips, tariffs on imported goods, penalties for price gouging, financial aid for first-time homebuyers or parents of newborns, and caps on drug prices.

While the experts largely disapproved of these policies, the general public gave an average approval rate of 63%. The most significant difference was seen in the area of tax elimination, with nearly 80% of voters in favor and about 90% of economists against.

Economic Distress and Government Spending

About half of the country votes conservative, typically favoring smaller government. However, the survey indicates that around three-quarters of all voters favor economic policies that involve increased government spending. This suggests that a significant portion of conservative voters are willing to compromise their principles to help people through challenging times.

Many American households are in a state of economic distress, with nearly 8 out of 10 living paycheck to paycheck and more than 20 million behind on their utility bills. In such a scenario, even the most ardent proponents of small government may be compelled to seek help from the government.

The Free Lunch Myth

Economist Milton Friedman described the free lunch myth as the belief that the government can spend money without anyone bearing the cost. It is evident that increased government spending can bring relief, but it also leads to more problems. The cost is always borne by someone.

A Solution Without Government Spending

What if there was a way to help people without increasing government spending? If we could provide assistance to some without taking money from others, it would be a win-win for both voters and experts.

With 20 million households behind on their utility bills and many living paycheck to paycheck, there are undoubtedly many more who are struggling to pay. The average cost of electricity in the U.S. has increased by nearly 30% since 2019. In such a situation, reducing the cost of electricity could provide significant relief. This would not require additional government spending but would involve the government ceasing to force a premature transition to more expensive and less reliable energy sources.

Investing in Better Energy Sources

If we want to think outside the box, the government could redirect some of the funds it spends on wind and solar energy, which have proven inadequate, towards more beneficial investments like responsibly sourced natural gas, which is affordable, reliable, and reasonably clean. Nuclear energy, which is safer and cleaner than many believe, could also be a viable option. This would not constitute new spending but would reduce energy costs more quickly.

Conclusion

Imagine a presidential candidate promising to put a couple of hundred dollars in everyone's pocket every month, indefinitely, by reducing energy costs. Such a proposition could be a game-changer in an election.

Bottom Line

It is evident that economic policies and the cost of living are significant factors in how people vote. The idea of reducing energy costs to provide relief to struggling households is an interesting one. It challenges the conventional approach of increased government spending and could potentially bridge the gap between voters and experts. What are your thoughts on this? Share this article with your friends and let us know your views. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.