UH2L

Auto MPG: The Economics of CAFE, Part One

CAFE doesn't restrict what kind of car you can drive. It restricts the average fuel economy of vehicles sold by a given manufacturer. And even then manufacturers can sell all guzzlers as long as they pay the fines. Mercedes has been paying fines for years but you can still buy a souped up AMG Mercedes getting 12 mpg.

And as for fuel tax increases being the way to go, that's like asking kids who are addicted to sugar if they want less sugar and they can vote to have parents that will give them as much sugar as they want or parents who will restrict how much sugar they can have. We are like such children in this regard. We want cheap gas and are outraged when the price goes too high. We feel that cheap gas is our God-given right and would never collectively vote in politicians that would raise gas taxes significantly, even if it was done gradually. There's also the part about such tax increases slowing down our economy and making transportation unaffordable for poor people.

CAFE is a decent solution but far from ideal. I think tax rebates on a sliding scale for cars more efficient than the standard are the way to go. These could be offset by sliding scale tax penalties on cars that get below the average.

Who Might Benefit From Detroit's Failings

Here's my take on the whole situation.

uh2l.blogs.com/things_...

I agree with the earlier comment that industry (and people) will be coming back to the Great Lakes in 10-15 years because they will need WATER, (the next oil). The Southwest and California are running out and Atlanta ran out last year.