Let the market decide
This entry was posted on 3/22/2007 12:00 AM and is filed under uncategorized.
We need more government regulation....not.
Let's look at Federal Corporate Average Fuel Economy (CAFE) standards. The government recognizes the benefits of people driving more fuel efficient cars. To achieve this goal, in 1975 the Feds created CAFE standards which force automakers to build cars Americans don't want. A better alternative is reduce income taxes and raise gasoline taxes so there is an incentive for the auto industry to build more fuel efficient vehicles -- namely, that customers want them.
What are Americans buying?
From a March 24 article in Madison, Wisconsin's Capital Times -
In February, the Chevrolet Silverado and Ford F-series big pickups still were the top two sellers in the U.S. at 58,696 and 55,251, respectively. Well behind in third with 32,148 was the top selling car, the Toyota Camry.
Two more downsides of CAFE standards
1 - There are lots of reasons U.S. automakers are floundering. CAFE standards are one of them. A National Public Radio segment states, "a White House estimate says boosting fuel economy standards could cost the (auto) industry about $114 billion." They don't say over what period and internet searches have turned up zero. (I've emailed them to get more information). Anyway.... not an effective and fair way to reduce energy consumption.
2 - From a Washington Post article on proposed CAFE standards:
"Critics say the rule actually encourages companies to make bigger vehicles that are less fuel efficient.
For example, the Subaru Outback, which is in the smallest class of vehicles, could be made less than an inch wider and longer and move up into the next size grouping, thereby lowering its fuel economy requirement, said David J. Friedman, research director for the clean vehicles program of the Union of Concerned Scientists.
'One of the fundamental problems with the system is automakers can add size, in some cases only a tiny amount, and meet a dramatically lower standard,' he said."
In conclusion
Smells like communism to me.
The better alternative: set the rules by shifting a portion of taxes from income to non-renewable energy sources. This will raise energy prices and create an incentive for conservation and alternative fuels. Let the market decide.