April 28, 2006

AN IDEAL WAY TO FORCE INNOVATION:

White House wants to change mileage standards for passenger cars (AP, 4/27/06)

The Bush administration asked Congress on Thursday to give it the authority to change fuel economy standards for passenger cars amid rising gas prices and growing concerns about the nation's energy security.

Transportation Secretary Norman Mineta wrote House and Senate leaders asking for Congress to — for the first time — allow it to create a similar program it recently completed for pickups, sport-utility vehicles and vans.

"Along with other previously announced energy policies, the president believes these actions are critical to promoting our nation's energy security and independence," Mineta wrote.


Set higher standards and let automakers innovate ways to attain them.

Posted by Orrin Judd at April 28, 2006 7:35 AM
Comments

Another item the conservative base won't like. They have never liked CAFE standards and feel the market and consumers should decide.

Posted by: AWW at April 28, 2006 7:45 AM

The market will decide. Governments set the conditions under which markets function.

Posted by: oj at April 28, 2006 7:52 AM

I understand that. My point is that the GOP base is (rightly or wrongly) ticked off at Bush and Congress and that every little move not to their liking adds to the pile.

Posted by: AWW at April 28, 2006 8:29 AM

When *isn't* the GOP base ticked off about something? Honestly, they've been more fickle than the average woman over the last six years. Bush should just keep doing what he's been doing and the base should stop expecting the world to revolve around them.

Posted by: Bryan at April 28, 2006 8:40 AM

No. Jack up gas taxes and let manufacturers and customers figure out the best way to adjust. CAFE just makes the product mix optimization problem for manufacturers more tightly constrained.

Posted by: JAB at April 28, 2006 9:04 AM

JAB:

Taxes and straightforward mileage requirements.

Posted by: oj at April 28, 2006 10:48 AM

Bryan:

As the moved into the Beltway they developed a belief that they are the epicenter of existence.

Posted by: oj at April 28, 2006 10:59 AM

Heck, OJ, the cars aren't the problem, the trains are. Get the regulations that killed the rails lifted and let the good times roll.

Posted by: Robert Mitchell Jr. at April 28, 2006 11:39 AM

It wasn't regs, just the highway boondoggle.

Posted by: oj at April 28, 2006 11:43 AM

Thanks for your thoughts, OJ. It's my understanding that it was the goverment's regs that made the trucking industry viable when they required the train companies to charge their customers based on the value of what was being transported. I'm not aware of this regulation ever being repealed, which would explain why rails are used to transport cheap stuff, like coal.

Posted by: Robert Mitchell Jr. at April 28, 2006 1:12 PM

Robert:

Had Ike and the military not put in the highway system the trains would still rule.

Posted by: oj at April 28, 2006 2:28 PM

OJ & Bryan,

If your base stays home and you lose one of the houses, you get to spend the next 2 years fighting subpoenas.

Where is the percentage in that?

The fact is the JAB is dead on. Let the prices take care of the innovation. CAFE standard are a perfect example of bad legislation.

You can only ignore your base up to a point before it falls out from under you.

Posted by: Bruno at April 28, 2006 6:40 PM

Bruno:

No one's staying home because of CAFE.

Posted by: oj at April 28, 2006 6:44 PM
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