Sunday, June 19, 2011

Obama Proposed CAFE Standards (And More)

President Obama owes much of his political success to the extreme left of the democrat party; the so-called progressives. Because of this, he is beholden to the progressives and their radical attempts to reshape America. One of the groups that have their hands in his pockets is the environmentalists. Obama has been on record many times (do some research on your own) stating that he wants our economy to be green-based. He claims that a green-based economy would create jobs. Spain has experienced something quite different.

Obama’s latest foray into satisfying the progressive’s green agenda is his Corporate Average Fuel Economy (CAFE) proposal. Under this proposal is the mandate that vehicles get an average of 62 MPG by 2025. This could prove mostly costly to the job market and our pocket books.

The Detroit News dogged David Shepardson has unearthed a study by on the of world’s most respected automotive research firms that reveals that President Obama’s radical CAFÉ mandate that vehicles average – average! – 62 MPG by 2025 ‘could force vehicle prices up by nearly $10,000, reduce sales by 5.5 million vehicles annually, and eliminate more the 260,000 jobs.”

Shepardson is quoting from the Michigan-based Center for Automotive Research (CAR) and the 260,000 job loss figure (consistent with past losses from CAFÉ rule hikes) is another dent in White House’s propaganda that Green creates jobs. (Emphasis mine, PACNW Righty)

The CAR study also reveals that Obama’s NHTSA and EPA have been gaming the figures when it comes to the cost of their new rules. The center’s study predicts it will cost between $3,744 and $9,790 per vehicle, while the agencies how low-balled the figure at $770 to $3,500 per vehicle. 

The resulting costs would shrink the new-car market, with 5.5 million potential buyers disappearing (and manufacturing jobs with them) by 2025. That assumes that the auto fleet can even be built to meet such an absurd spec.  Currently, no car – much less the average – meets 62 mpg.  Indeed, only a handful of small vehicles meet the 35-mpg fleet-wide standard mandated in just five years. (Source: National Review)

Based on some very rough calculations, policies either proposed or enacted by Obama and his democrat henchmen in Congress would cost the average person in the US over $15,000. Figure an additional $10K to buy a car, $2.5K for the increased cost of purchasing health care, and after the cost of electricity and other energy necessarily skyrockets we’ll be paying up to and additional $2.5K each year to heat, cool and light up out homes. The calculations are rough and not based on intricate statistical modeling. Sometimes mistakes can be made with statistical modeling.

I don’t know where I’m going to come up with these additional funds. I guess I could cut back on spending in other areas. I guess I won’t go out to dinner as often, or go to the movies, or go on vacation. I could try and get more years out of my old and worn out dryer. But foregoing these items will have an impact on the economy because I will not be the only one cutting back on expenses. These cut backs will cost the economy more jobs as demand for goods and services decrease. Fewer people hired as wait-staff at restaurants and less need for ticket-takers at the movies and less hotel and resort employees as people stop traveling. If folks fiddle and “MacGyver” their home appliances there will be less need for repair people and folks building this equipment which translates into even fewer jobs.

When Obama was running for President his campaign slogan was “Hope and Change”. Well, there certainly has not been much hope with all the crappy economic news that bombards us each day. But there certainly has been change, but not for the better. Ask yourself if you are better off now than you were four years ago.  Unless you are Nancy Pelosi, most likely not.

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