One hundred years ago, a major energy scandal exposed President Warren G. Harding's corruption, undermined the credibility of the Republican administration, and led to the convictions and resignations of key Cabinet members and other officials.
A U.S. Senate investigation found that Interior Secretary Albert Fall (yes, “Fall Guy”) and other Harding cronies profited from the lease of a U.S. oil reserve named Teapot Dome. Establishes Congressional authority to conduct executive branch oversight investigations And Harding will leave the fateful presidency under a cloud of corruption.
A similar, but potentially more serious, energy scandal is currently unfolding under President-elect Donald Trump.
Elon Musk uses his influence to Promote the repeal of existing electric vehicle tax credits Actions for Consumers and Other Electric Vehicle Policy. Musk said, “Help Tesla,That's because major competitors like GM and Ford are less established in producing and selling electric vehicles, but have made significant investments.
Ironically, eliminating the tax credit would go directly against the central goal that President Trump claims he wants to achieve. President Trump campaigned on strengthening U.S. domestic manufacturing, but eliminating the EV tax credit would penalize U.S. auto workers and auto companies and prevent new growth in key domestic manufacturing industries. It will strangle the department.
And, of course, President Trump famously claims he wants to do that. punish china. But eliminating the electric vehicle credit would directly benefit China by eliminating U.S. competitors.
China controls three-quarters of the global lithium-ion battery market with massive subsidies. Accounts for two-thirds of the global EV marketThis is partly due to President Trump's refusal to support the U.S. EV manufacturing sector from 2017 to 2021. The EV tax credit, passed by a Democratic Congress in 2022 at the request of President Biden, was an attempt to help the United States beat China in this important manufacturing sector. .
Energy Secretary Jennifer Granholm, who has been at the forefront of clean energy in the United States, said: she said. “Ultimately, we will be ceding territory to other countries, especially China.”
But the irony is thicker and more bitter than that.
Much of Musk's success is due to $465 million loan from Department of Energy 2010 under the Obama administration. But since getting government aid, Mr. Musk has opened – you guessed it – a huge new factory in China, where production is now underway. Half of Telsa's fleet. In fact, many of Tesla's EV models will not qualify for the tax credit, as Democrats insist that eligible vehicles contain no Chinese-made parts, in a nod to American manufacturing. It has become.
So Musk used a huge U.S. government loan to save Tesla, which needed money to prevent bankruptcy, then moved most of Tesla's production to its main U.S. competitors, and now, They are trying to hurt companies like GM and Ford that produce EVs by killing consumer incentives. american cars
So much for America First!
But don't worry about Elon. According to Economist magazine, Since Mr. Musk allied with Mr. Trump, his total business value has soared 50% to $1.4 trillion. [new] president. “
Congress should reject this self-dealing by Mr. Musk and instead focus on supporting American manufacturers.
In August, 18 House Republicans sent a letter to Speaker Mike Johnson urging him not to eliminate clean energy tax incentives. Additionally, major U.S. automakers have already invested billions of dollars to retrofit factories in Michigan, Ohio and other major industrial states for electric vehicles. Now, The auto industry has started fighting back.. Ford, General Motors and Stellantis are strategizing with other automakers on how to save on tax credits and even Environmental Protection Agency rules that effectively mandate increased production of electric vehicles.
Elon Musk, the world's richest man, was able to get there thanks in part to federal support. However, after supporting Trump, he changed his mind again. “Take away the subsidies”he wrote to xwhich he also owns. “It only helps Tesla. Eliminate subsidies from all industries!”
Back in the 1920s, Congress launched a series of investigations into the Teapot Dome scandal, led by Sen. Robert La Follette (R-Wis.), which exposed a widespread pattern of corruption by so-called “powerhouses.” “Ohio Gang” Harding's colleagues and government officials. Albert Fall was indicted, convicted, and imprisoned for his role in Teapot Dome and other oil scandals, becoming the first member of the presidential cabinet to be convicted of a felony while in office. The Director of Veterans Affairs was subsequently indicted and convicted of bribery in the administration of the agency. another An important figure in the government committed suicide. at the residence of the Attorney General, who was himself indicted. Harding died in office in 1923. probably a heart attackThis was just when the scandal began to spread and his reputation began to suffer.
Today, 100 years later, the richest person in the world who helped fund President Trump's campaign and is benefiting from it is… multi-billion dollar federal contract SpaceX is using its influence to undermine U.S. competitiveness in a key emerging manufacturing sector for electric vehicles. Right now, it's the average auto worker, American auto companies, consumers, and America's climate protection on one side, and Elon Musk and Donald Trump on the other. Which side will Congress take?
Paul Bledsoe is a professor at the Center for Environmental Policy at American University. He served on the staff of the U.S. House of Representatives, Senate, Department of the Interior, and White House Climate Change Task Force under President Clinton.
