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Tuesday, May 19, 2009

Obama to Announce Stricter Mileage and Fuel Emission Standards for Automobiles

Obama's new fuel standards will smash the auto industry. (photo)

It's just one insane policy after another these days. When I argued against the auto bailouts last December, I wrote:

When a group of automobile industry executives who are intimately acquainted with the particulars of their own industry are apparently not able to return a profit on their operations, it is downright absurd to think that a group of politicians (who are hardly exemplars of efficient spending or financial management themselves) can dictate operational policies that will return profits from these auto companies.

Today's announcement from President Barack Obama calling for stricter fuel and emissions standards is just more evidence to substantiate my concern:

President Barack Obama will announce new vehicle-emission rules tomorrow, setting the first-ever nationwide limit on greenhouse-gas pollution from autos, people familiar with the plan said.

The move would force automakers to meet a fuel-economy standard for 2016 models of slightly less than 35.5 miles a gallon, a target Congress has said wouldn’t have to be met until 2020.

Crippling the Auto Industry and Hurting Consumers

And just what would this do to the price of automobiles? It will cost consumers an extra $1,300 per vehicle by 2016. To be clear, Congress' standards are already going to cost consumers an extra $700 per vehicle regardless of what the Obama Administration does, and Obama's new, stricter policy to be announced today will add $600 on top of that.

At a time when the automobile industry is struggling to stay alive, and after the two most recent White House administrations and members of both parties in Congress claim that it is simply "too big to fail" -that the costs to our country would be too catastrophic and that it must be kept alive even if that means illegally and unconstitutionally extending to it billions of dollars of taxpayers' money- it is utter madness to hurt automobile sales by slapping $1,300 on top of each new vehicle's price. This is especially true when consumers are already so strapped for cash.

Schwarzenegger & Granholm

This part is just too funny for words:

Obama will announce the moves Tuesday at a huge White House ceremony designed to underscore cooperation among automakers, environmentalists and the two governors whose states have most closely watched the fate of U.S. auto-making -- Republican Arnold Schwarzenegger of California and Democrat Jennifer Granholm of Michigan.

So the two cheerleaders we have in attendance at the ceremony to endorse this policy are the governors of the two states whose economies have been the most wrecked by their governments' over-regulation, confiscatory taxation, and mismanagement? Could they make it any more obvious to the rest of us that this policy will crash and burn? This is not about global warming, it's not about cleaning up the environment, and it's not about energy independence. This is about more power, prestige, and money for the Washington establishment.


  1. When the American auto manufacturers are already on deaths door, this is another nail in the coffin. Any outsider who looked at this would laugh at us putting more strangling regulations on an industry that is failing. I'm old enough to remember how rotten cars ran when they put in the first CAFE standards, pollution controls, and took away unleaded gas in the 70's. It took a Huge V-8 to have the power of a previous small straight 6. And power and gas mileage went out the door. But we all saw this coming, once you taker money from the government they will tell you what to build, who will build it, who will run the company, and how much they will be paid. They should have been smarter and gone for bankruptcy. Chrysler took at least 5 billion and went there anyway, and as of today GM got 19.4 billion and will end up in bankruptcy with the UAW and the USG as the owners. I hope the health provider industry fights back before they become another arm of the U.S. Government. Dave

  2. Dave it seriously does help me a lot to hear that other people are as fed up with this as me and as awestruck by the sheer insanity of it all. As for the health care industry, I wouldn't hold my breath, but maybe, just maybe if we do all we can now to get the right kind of people in office like Dr. Rand Paul and Peter Schiff- maybe we can start things off in the right direction.