Tuesday, May 19, 2009

Just because Obama decrees it doesn't make it so

Everyone can all be so happy now that by 2016 an auto maker's fleet will have an average mileage rating of 35.5 mpg. Obama has decreed it and solved the problem of dependency on foreign oil and pollution problems all in one fell swoop. It's historic.

But wait! Just because the government says cars must get 35.5 mpg doesn't mean it can actually happen. Hell, why not just demand cars get 40 mpg, or 80 mpg, why not 400 mpg? If Obama can say, "Uh, by, uh, 2016, uh, all new, uh, cars, will get, uh, 35 mpg" why couldn't he say they will get "uh, 400 mpg?" Obviously the will of government will outweigh any actual technology.

This is the problem. Auto makers do have technology for cars to get upwards of 40 mpg, however the tradeoff is these cars will be little more than glorified golf carts. Americans want large cars, whether it be family sedans, crossovers, SUVs, or full sized trucks, the demand is for large cars and the technology to make those cars get 30 to 35 mpg just isn't there yet and it's doubtful it will be there by 2016.

Supporters of these new emissions and mileage standards will claim that the 35.5 mpg is an average of the fleet and that not all cars produced by one auto maker must be 35.5 mpg. Yes, that is correct; however, that average must still be met and if most of the fleet gets 20 mpg meeting that average will be a problem. 

The solution? It will be that more small cars will have to be added to the fleet to bring that average mpg in line. It won't matter if they can't sell a single one of these as long as they are available. Of course, how long will it be before these golf carts are the only car that is available and we are forced into them?

Obama does admit that it will now cost more to buy a car because it will be more expensive to produce these higher gas mileage cars. In fact Obama, who knows all, has actually nailed down the price to be $1300 more. Isn't it amazing how he can see that out in the future? But don't worry because you will more than make up that price in fuel savings says the Bamster.

If you believe all that then I have a tropical island in North Dakota to sell you as well.

But lets just say this whole thing did reduce the amount of gas you used. If you are using less than it's likely everyone is using less. If less gas is being used, bought rather, than that also means that there is less gas being taxed. And that of course means that gas tax revenues will be way down. "So what?" you ask.

We all know that the government, whether it be federal or local, can never do with less money. Do you think they will sit by idly as gas tax revenues decrease? Ha! Ha ha! Of course not, they will raise the taxes on gas to make up the deficit. This has already happened in places like Florida that put in water restrictions. People used less water (per the government mandate), therefore there was less money rolling in, so prices were raised on water. So when that gas tax goes up, how much will you really be saving?


2 comments:

  1. an island? in NORTH DAKOTA?!?! how much? i want it!!

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  2. There are islands all over ND, but this one is tropical. All I need is your soul and tropical paradise is yours. I'll even throw in a talking dog.

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