There are some valid points made with regards to the slow transition to alternative fuels. However, many critics fail to take into consideration the other factors that impact the economy and the government. If the transition was immediate, corporations would lose massive sums of money. Some may say that this is acceptable because our environment and minimizing our reliance on oil is more important, and that these corporation are massive conglomerates that make enough money as is. Perhaps, but losses in their money means losses in taxable revenue. This means less funding for education, health care, etc. Furthermore, this will force companies to cut jobs. An enormous amount of individuals will be laid off, and with less taxable revenue, their will be no money available to train these individuals to obtain jobs in the alternative fuel sector.

This does not just apply to large corporations. Small gas stations will fire attendants, mechanics will be laid off and replaced by those who are trained to work with alternative fuel basic vehicles. Obligations to shareholders will prevent corporations from investing money in retraining old employees when they can more cost efficiently train younger generations. This means high unemployment of people whose skill is now obsolete. Taxes that would be designated to assist them are no longer available since companies are earning less revenue and have less people employed who earn taxable wages. This would lead to less consumer spending and further deterioration of the economy. The remaining action would be for the US government to contribute to its already enormous debt by borrowing, but this would mean borrowing from countries who we have had oil contracts with. They are not likely to be happy with the US for backing out of deals that would have generated billions of dollars.

Of course, in the Long run, money saved through alternative fuels will be reflected in the economy. Consumers will have more disposable income that is no being wasted on gas, companies can compete through innovation and improvement which will further the cause, and the US can still take part in some oil dealings, earning a significant sum of investable capital. Alternative fuels can and will be beneficial, but as history depicts all to clearly (i.e. Gorbachev's abrupt economic reform just to name one), drastic changes to the economic landscape must be done over time and very cautiously. The devastating impacts of turbulent changes to such a major sector of our economy are not worth rushing.

Learn more about this author, Kevin Pack.
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