TCCoA Forums - View Single Post - Federal government passes new CAFE laws - 54.4 MPG avg by 2025
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post #46 of (permalink) Old 08-30-2012, 05:36 PM
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XR7, I couldn't agree with you more. I wasn't advocating any artificial incentive imposed by the government, I was just saying that a higher gas tax would be a less harmful way to do it than the CAFE laws. I completely understand how all the laws did was kill off the large family sedan in place of the SUV

NetKeym, yes I did say the same thing when the last round of CAFE laws went into effect, and if you would like to take a look at the current new car market compared to 5 years ago, you will see that I was correct then too. Average base price of a midsize car has gone up about 15% in the last 5 years. As for the rest of it, those aren't theories but basic economics. If the price of one good goes up, that cost gets passed along and drives up the price of every good or service that depends on it. Increased prices mean decreased demand, which means less of the goods being sold, which means less being produced, which means fewer jobs available producing and selling the now smaller quantity of goods. If you want more fuel efficient vehicles sold in this country, you need to convince people of the benefits of more fuel efficient cars, and that those benefits are worth the costs in terms of price, comfort, safety, reliability, aesthetics, or whatever reason it is that drives people to want the biggest most powerful car they can afford. When people WANT the smaller more fuel efficient cars, the manufacturers will produce them to meet the demand. Trying to alter the supply side without accounting for the demand is a recipe for bankruptcy, and we have already seen at least 3 times now that the government will bail out the auto makers to prevent them from going bankrupt, which ultimately means that the people are going to pay for these small econoboxes whether they like them or not.

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