fool me twice...

Auto MPG: The Economics of CAFE, Part One

CAFE makes older cars more desirable. Look at the prices of vintage autos: the cars built before CAFE existed are in much higher demand.

The pre-CAFE 1970 Camaro had a 370 hp V8, but the post-CAFE 1980 Camaro had a 170 hp V8. These cars have the same bodystyle and the newer model includes some better technology and better fuel economy, but today a 1970 Camaro is worth 5 to 10 times as much as a 1980 Camaro.

This "improvement" to CAFE will have the perverse effect of persuading drivers to keep their old, polluting, capable cars rather than pay a lot more for a newer, cleaner, less-capable car.

With or without CAFE, the only thing that will EVER have an impact on gasoline consumption is the price of gasoline.

Problems That Detroit Bailout I Doesn't Address

"No matter how much money Washington sends to Detroit, it won't give consumers a reason to buy cars."

That sums it up. This entire Detroit debate only addresses a symptom of the recession. Better to fix the economy and cure the disease.