Google


Obama’s New CAFE Standards Will Cost Us All More Money

August 5, 2011 | Filed Under Barack Obama, Budget, Business, Capitalism, Climate Change, Congress, Democrats/Leftists, Economy/Finances, Energy, Environment, Ethics, Free Trade, Freedom, Government, Jobs, Liberals, Nanny State, Oil, Republicans, Taxes, Warner Todd Huston | Comments Off

-By Warner Todd Huston

The Obama administration has been touting new Corporate Average Fuel Economy (CAFE) standards to be imposed on America’s automobile manufacturers saying that it will save all Americans money at the pumps. Unfortunately, there are all sorts of hidden costs of which the administration isn’t noting, costs that will drive up the price of driving in multiple ways for all of us.

The new standards are supposed to raise the miles per gallon requirements from the 2016 mandate of 35.5 mpg to 56 mpg by the year 2025. The administration claims that this would be a big savings and would serve to help get Americans off a reliance on foreign oil.

Curiously, as Obama touts his new CAFE standards as a way to get us off foreign oil, there is no talk at all of increasing domestic oil production which would help do the same thing. But I digress.

Still, even if raising the mpg standards is a good idea, at this time automotive technology can’t reach that goal. Because of that, the car companies will have to spend billions in research and development to reach the new requirements. This will cause an added cost that isn’t being considered.

This new wave of R&D and the subsequent finished products based on that research is estimated to add up to $6,000 to the cost of every new car by 2025. Sadly, this would price low-end car buyers right out of the new car market.

Additionally, the rising prices of new cars would necessarily be followed by higher prices for used cars. This would also price those low-end buyers out of the used market.

But, let’s say that the new mpg requirements will, indeed, save Americans money because they will be buying fewer gallons of gasoline per year. Even were that true these savings will have other “unintended” consequences.

The first thing that one has to realize is, if Americans are buying fewer gallons of gas, the intake of gasoline taxes would necessarily correspondingly fall with the fewer gallons bought. Naturally, the states would not want to follow that by spending less on the roads and transportation projects that those taxes are earmarked to fund.

Naturally, the first idea that the federal government and the states would resort to might be a hike in gas taxes. This would hit every driver on every gallon of gas somewhat mitigating the fewer gallons bought. And with the extra costs of the new cars this would wipe out any savings driver’s might find with their fewer gallons bought.

The idea of raising gas taxes has been a hard sell for quite a while, of course. AOL’s AutoBlog addressed this subject last year with an interview with Michigan Democrat John Dingell.

Gas taxes are the single most unpopular tax an elected official can foist upon a voter according to elected officials. A couple of years ago, I had lunch with Rep. John Dingell (D-MI) who has held the Southeast Michigan seat since Eisenhower was President. Seriously. He agreed that it was a smart and sound policy, but one that “kills you with the voters.”

Even if lawmakers balk at raising gas taxes, there are plenty of other ways that they could dip their hands deeper into your pockets.

One idea that has been floated by various lefty groups is to build more toll roads around urban centers. This, they clam, will help reduce “road congestion.” In other words, they want you to stay out of your cars, they want as much as possible to limit your freedom of movement.

But toll roads have other politically attractive components. New toll roads means building new tollbooths. It also means new state jobs, new union jobs, and more money and government control over your life. It also means enlarging the constituency for Democrats. Very attractive ideas, indeed.

Another idea that the Obama administration has floated is an annual vehicle mileage tax. A yearly mileage tax hits suburban and rural citizens hard because they drive so much more to get to work than city dwellers do. The low to middle-income folks outside of the big cities would find costs to get to work soar under this idea.

These are just a few ideas being floated by lawmakers to put a further burden on America’s drivers, new CAFÉ standards or no.

With our luck, with the Obama Administration’s new CAFE standards we’ll be hit by all these things in varying degrees costing us all more money in the long run. Like with most every scheme of “savings” the administration floats, they’re gonna cost ya.
____________
“The only end of writing is to enable the reader better to enjoy life, or better to endure it.”
–Samuel Johnson

Warner Todd Huston is a Chicago based freelance writer. He has been writing opinion editorials and social criticism since early 2001 and before that he wrote articles on U.S. history for several small American magazines. His political columns are featured on many websites such as Andrew Breitbart’s BigGovernment.com, BigHollywood.com, and BigJournalism.com, as well as RightWingNews.com, RightPundits.com, CanadaFreePress.com, StoptheACLU.com, AmericanDaily.com, among many, many others. Mr. Huston is also endlessly amused that one of his articles formed the basis of an article in Germany’s Der Spiegel Magazine in 2008.

For a full bio, please CLICK HERE.

Comments

comments

Tags: , , , , , ,


Fair Use: This site may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. I am making such material available in my efforts to advance understanding of political, human rights, economic, democracy, and social justice issues, etc. I believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research, educational, or satirical purposes. If you wish to use copyrighted material from this site/blog for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

You must be registered and logged in to post a comment. Anyone can register. No registrant's information is kept, used, or sold. CLICK HERE TO REGISTER

Social Networking


Help the Soldiers!



American Genius

Our Founding Ideas

"Governments are instituted among men,deriving their just powers from the consent of the governed." Declaration of Independence July 4, 1776





Enter your Email


Preview
Powered by FeedBlitz

Subscribe in a reader




Recently Written

  • Labor Unions For Dummies
  • That’s Christmas To Me – By Pentatonix
  • Why Inner City Blacks See Racism Everywhere and Think We Are Still in Slave Days and Whites Don’t
  • Where is Hillary on Obama’s Abuse of Power? The Five Times She Said Presidents Need Limits
  • To Aid Obama, Old Media Establishment Took a Pass on Gruber Videos
  • Another Government Making it Harder for Citizens to Get Public Records
  • President Obama Says Christians More Responsible for Beheadings Than Muslims
  • Jim Webb: The Democrat Who Could Beat Hillary From The Right
  • Jezebel Employees Charge Racism After White Outsider Picked as New Editor Over African American Insider
  • Ill. Sen. Dave Syverson is an Example of Why the Ill. GOP is a Miserable Failure


  • What THEY Say:
    Foreign News In English




    Click HERE for information
    on my fedora collection.
    Antique Stetsons, hat history...



























    Contact Us

    Email Publius' Forum

    Archives

  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008
  • March 2008
  • February 2008
  • January 2008
  • December 2007
  • November 2007
  • October 2007
  • September 2007
  • August 2007
  • July 2007
  • June 2007
  • May 2007
  • April 2007
  • March 2007
  • February 2007
  • January 2007
  • December 2006
  • January 2006
  • December 2005
  • November 2005
  • October 2005
  • September 2005
  • August 2005
  • July 2005
  • June 2005
  • May 2005
  • April 2005
  • March 2005
  • February 2005
  • January 2005



  • Add to Technorati Favorites


    Clicky Web Analytics