Comments on: What About Changing CAFE Standards and Gas Taxes?

By: ExiledIndependent

ExiledIndependent — Thu, 11 Dec 2008 12:49:43 +0000

SF, don’t forget that Toyota operates under drastically different domestic policies in Japan than US automakers face here. Check out their government’s measures to encourage the Japanese to buy Japanese cars and report back. If US automakers suggested a quid pro quo approach (treat the Japanese here the same way foreign brands are treated in Japan), they’d be accused of advocating a Laffer-esque tariff policy.

Free market forces should rule the day here. Instead of the government mandating that the automakers produce unprofitable vehicles, let them sell vehicles that a) people want and b) they can sell at a profit. This could be anything from the Hummer XXL to Chevy HydroGreen.

By: SFOtter

SFOtter — Wed, 10 Dec 2008 21:38:17 +0000

Toyota still managed to turn a profit inspite of CAFE standards.

Thesis disproven.

By: L

Wed, 10 Dec 2008 21:12:32 +0000

Alan is definitely on to something with the CAFE vs. gas tax argument, and in fact the CBO has done studies and has found the gas tax as both a cheaper and more efficient policy to reduce gasoline consumption (it’s on the internet somewhere).

Of course, that shouldn’t be the primary goal of the national government but what should be is to rectify the negative externalities produced from driving. The government, in my opinion, should step in here because this is considered a market failure, in that society pays the cost of environmental damage, national security issues, congestion, saftey, etc. that the individual consumer does not. Why not remove the inefficient CAFE standards and impose a higher gas tax? I cannot agree that auto companies “did this to themselves.” They were producing what people were demanding, they don’t drive demand just respond to it. Politicians need to face the music and pass an unpopular but important policy.

By: Jimmy the Dhimmi

Jimmy the Dhimmi — Wed, 10 Dec 2008 20:56:40 +0000

Call the new federal “Car Tzar” and ask him what Americans should buy, and then force auto workers to make them. That’ll fix the problem.

By: Cody

Cody — Wed, 10 Dec 2008 19:11:53 +0000

The Companies did this to them selves. If they would have cut down the CEO’s salary then maybe they wouldn’t need so much money from a bail-out plan. They could have just started making gas saving cars years ago, just like japan. But that’s not what American’s wanted. We want big loud hunks of junk that throw our money down the drain, or should I say gas tank? If auto companies would have said hey we really need to do something about this environmental problem and start making the best, cost effective, gas saving cars with stylish looks and sporty models, then thats not really taking anything away that American’s are used to. Simply take a hummer and re engineer it to get 40 mpg. It’s possiable to do this, we have the technology. But us as American’s are to blind to excersise the power of the dollar. Simply stop buying gas guzzlers and trucks that you don’t need. how many soccer moms drive a suv? Quite a few. Do they really need that?, NO! The auto manufactures will pick up on this and change the way they make things accordingly to fit the demands of the buyers. But us as American’s are to stubborn and that there is the problem. So stop buying trucks and suvs unless your towing or in construction and such. but what about them being safer and such. The less trucks and suvs on the road, the less likely you are to be hit by one.

By: Chris

Chris — Wed, 10 Dec 2008 18:20:53 +0000

Gm and company have had years to reform their gas guzzlers, and you’re right, the motivation wasn’t there so they fought and bought congress for the last 30 years about it. But now, when they see the folly of their ways they’re crying for help. maybe they could’ve just had a little insight into the future instead of trying to force the market to buy what it makes instead of what the market wants.