Do They Really Think We're This Dumb?

Apparently, while we were focusing our attention on Hurricane Isaac and The RNC, those sneaky devils in DC decided that we are still not paying enough for cars and gas—and that vehicle safety should be in the back seat so that fuel economy can take the wheel.

According to an article in the International Business Times, yesterday, Obama finalized new fuel economy specs that will (supposedly) increase the Corporate Average Fuel Economy (CAFE) of the U.S. auto fleet to almost 55 mpg by 2025—And save us oodles of cash in the process.
While that sounds great on the surface, the numbers don't add up.

Let's go back to the age of disco, the 1970s, when motorists were all up in arms over gas shortages and rationing that resulted from the Arab Oil Embargo. It was a rude awakening that we had grown overly dependent on imported oil and something needed to be done. As government's typical response to every crisis is to set up a new rule or regulation, creating a corporate fuel standard fit that agenda. And what would happen to any automakers that didn't comply? They would get taxed a set amount per vehicle and pass that along to the consumer. So for Washington, it was a win-win.

But was it necessary? It's common sense that, as fuel prices increase, vehicles that are the most economical to drive will have a solid sales advantage over those that aren't. So the marketplace certainly has had a lot more to do with improvements made in fuel economy than the gummint regs.

Regardless, in 1978, the first CAFE standard was set at a combined (cars and trucks) 17.2 mpg. The benchmark was then raised progressively. From 1991 through 2007 it increased from 20.2 to 22.2 mpg. During the same time, the average price of gas rose from $1.53 to $2.64. Using the US inflation calculator to compare the value of a dollar in '91 vs '07, that's an increase of ONLY 33 cents per gallon during the entire Clinton and "W"  presidencies! (note: in 2009, gas prices dropped temporarily to $2.14 a gallon).

Compare that to where we are now. 

Since Obama took office, the price of gasoline has been bouncing around $4 a gallon. That's an increase of $1.08 per gallon (adjusted for inflation) in less than 3 years.

The new standards adopted yesterday project a saving of 12 billion barrels oil and the elimination of 6 billion metric tons of CO2 pollution (I love how they round off these huge numbers). Who knows? Maybe. But to say that "A family purchasing a new vehicle in 2025 will save $8,200" is hog snot. A lot could happen in the next 12 years. There are just way to many variables. By then, gasoline* (based on what we've seen in just the last 3 years) could easily be $9-$12 a gallon and a basic family sedan that now costs $25K will be at least 32K.

And, because the easiest way to increase mpg is to decrease vehicle mass, future cars will have to be lighter and lighter means less safe. According to H. Sterling Burnett of the National Center for Policy Analysis, NHTSA data indicate that "322 additional deaths per year occur as a direct result of reducing just 100 pounds from already downsized small cars, with half of the deaths attributed to small car collisions with light trucks/sport utility vehicles." USA Today further calculated that the "size and weight reductions of passenger vehicles undertaken to meet current CAFE standards had resulted in more than 46,000 deaths."

Now, I'm just as concerned about the environment and the need to reduce dependence on fossil fuels as anyone, but I refuse to be taken in by slight of hand moves that have historically been nothing more than a another sneaky way to tax the citizenry.

Speaking of fossil fuels. This shouldn't even be about gasoline. While most of the other developed countries are putting their resources into Hydrogen Fuel Cell Technology, Obama, shortly after taking office in 2009, actually pulled the plug on an aggressive plan put in place by George W. Bush. Apparently, he's starting to rethink that decision but in the meantime, we've fallen 3 years behind.


Additional Sources:

Official: 2012 CAFE Standards Finalized

Obama's Sneaky, Deadly, Costly Car Tax

Corporate Average Fuel Economy (Wikipedia)

"Summary of CAFE Fines Collected" (PDF).