May 19, 2009

Efficient Car Rope-a-Dope

How do you save a dying auto industry in the Obama administration? Step 1, Create federal regulations virtually eliminating the production of the models people most want to buy. (linko)

No, I don't mean Honda, Toyota and VW, snarky.

It looks, simply, that he's applying California standards to the nation. I had always assumed that this would be the case some day. The new national fleet mileage rule for cars and light trucks of 35.5 miles per gallon by 2016. In the odd chance you're wondering, the current national standard is about 25 miles per gallon.

This is a political rope-a-dope. Rather than institute a $2.00 Federal Gas increase - which would have accomplished this goal in the marketplace rather than through government intervention - will put the initial burden on the car manufactures. [Those car manufacturers that are around] In 2016 will happily slide the costs to implement these Federal standards onto your MSRP. So you'll see at least an additional $1,300 added on your next vehicle - but we'll feel good about not paying more tax on gas. That's one tax increase that Obama has dodged, but still gets what he wants. 

A nice maneuver. Smoke and mirrors, and there is no real change.


JFK said...

It is no contradiction – the most important single thing we can do to stimulate investment in today’s economy is to raise consumption by major reduction of individual income tax rates.

— John F. Kennedy, Jan. 21, 1963, annual message to the Congress: “The Economic Report Of The President”

mrs x said...

Some soccer moms will have to give up hulking SUVs. Carpenters will still haul materials around in pickup trucks, but they will cost more. Nearly everybody else will drive smaller cars, and more of them will run on electricity.

The higher mileage and emissions standards set by the Obama administration, which begin to take effect in 2012 and are to be achieved by 2016, will transform the American car and truck fleet.

Choice - It's okay for a woman to kill her baby... but not for her to buy a car.