High Hopes for Higher Milage

In yet another remarkable undertaking for change, Obama announced this week stringent new fuel and emissions requirements that mandate a Corporate Average Fuel Economy (CAFE) of 36 mpg within the next 7 years. Just more cheery news for our beleaguered domestic automobile manufacturers of which 2/3rds are on the government dole. Perhaps that explains the forced smiles and phoney congratulations from the heads of Ford, GM and Chrysler at the announcement, instead of their customary pre-bailout whining that the goal is unreachable and expensive with current technology (which it is).

To achieve the nearly 10 mile per gallon improvement, look for a drastic reengineering of the cars and trucks sold in the United States. Passenger automobiles will become lighter, smaller and much less powerful. They will cost anywhere from $1,300 (Obama estimate) to $3,000 (industry estimate) more than a comparable compact today (sans inflation). We may save the environment, but more people will die on our highways every year. Small cars are still at a disadvantage over larger ones in a collision.

You will read, with great hand-wringing and trepidation in the auto press, that there is a more sensible approach to gains in fuel utilization "if only we had a coherent national energy policy". Wake up! The CAFE requirement, however bone-headed, is our policy and has been since 1975. Instead of working to stabilize gasoline prices and moderate consumption with a rational, measured approach to volatile commodities, we will do the exact opposite, control the individuals and regulate the machinery that consume the commodity. That this strategy of governmental-contrived manipulation will solve what a free market economy could have done on it's own is a testament to the fact that people never learn (Sorry, it must be my pesky history degree rearing its ugly head again).

You might argue what difference does it make if the end result is the same. But which would you rather have, stable gas prices via taxes at (a hypothetical) $4 a gallon and buy what you want, or drive a government-designed clown car and watch gasoline prices gyrate between heaven and hell? Oops, sorry, there's that word "choice" again.

Don't get me wrong. As a nation I believe respect for our environment and conservation of resources is both necessary and practical. That's just common sense. That same common sense could also allow auto manufactures to build what the public desires to drive and pay the price at the pump. Economics appears to work for other choices we make in our life. Tell me, did the price of your new home influence your selection to buy it? If we use the current administration's logic, won't we be better off if home builders construct only 600 square foot houses for you to live in? I don't see the difference.

How fitting that a week before Memorial Day 2009, Barack announces a policy which will mark the end to what millions of U.S. military men and women died to protect and preserve... our culture of freedom and choice.