Saturday, January 31, 2009

"Destroying Detroit to Save Detroit"

With the left hand, the government pours billions upon billions of dollars of "aid" into Detroit's automakers, while with the right hand they create legislation that will bankrupt them like some kind of super-evil legislative smart-bomb. Rich Lowery calls it a "Love-Hate Affair":

A few months ago, GM and Chrysler got a federal lifeline in the form of $17.4 billion in loans, on grounds that their health is essential to the economy.

Now comes news that the Obama administration is acting quickly to approve a waiver for California to impose costly new restrictions on carbon-dioxide emissions from cars.

To combat global warming, California wants to mandate a 30 percent reduction in tailpipe emissions by 2016 and a fuel-efficiency standard of 49 miles per gallon by 2020. As many as 13 states will follow California's lead, creating a regulatory patchwork with automakers forced in practice to meet the higher standard.

Even California admits that the new strictures will add $1,000 to the cost of vehicles by 2016. (The carmakers estimate $3,000.) So, GM and Chrysler will struggle to shed labor and legacy costs - just to see new regulatory costs imposed on them by the very political authorities that are putting taxpayer dollars at risk to save them.

It's the rise of self-defeating industrial policy.....

Gateway Pundit finds this idiocy raised to the nth power in the Democratic-controlled Congress:

Democrats want to include a new car crushing plan in the "stimulus" bill where the government would buy new cars and trucks that obtain less than 18 mpg and crush them.

The so-called “Accelerated Retirement of Inefficient Vehicles Act” is "Cash for Clunkers" with a twist. Instead of focusing exclusively on old cars as is typical with scrappage programs, this bill will target any vehicle with lower fuel-economy ratings. Participants will receive a cash voucher to purchase a more fuel-efficient new car or used car (model year 2004 or later) or receive credit for the purchase of public transportation tickets. Under the legislation, “fuel efficient” means at least 25% better mileage than the CAFE standard. It will be illegal to resell the scrapped vehicles. Bill sponsors want to destroy 4 million pickups and SUVs over the next four years.

Vehicles targeted for the scrap pile will likely include Chevy Blazers, Silverados, S-10s and Tahoes; Dodge Dakotas and Rams; Ford Explorers and F-Series; Jeep Cherokees and Wranglers; and any other SUV or truck that obtains less than 18 mpg.

So much for the will of the American consumer, so much for choice, so much for the free market, so much for the used car business, so much for a morsel of common sense in American economic policy.

Incidentally - the Democrats will have to pry my Jeep out of my cold dead hands:

Yeah, that's right, lefties. Make my f*ckin' day....Ah, I betcha just the sight of this little 17/19 MPG beast would make a liberal soil themselves and run screaming home for their wet nurse...

And could somebody please wake me when Baracky finally gets a clue?

1 comment:

Anonymous said...

Man, is our political class dim!
Nice Jeep, though