10 Ways the Obama Mileage and Pollution Rules Will Affect You and Me

President Obama’s plans to increase the average car’s mileage to 35.5 MPG and reduce auto emissions by 2016 may sound like a victory for just about everyone. While it may be so in the future, the immediate impact on you and me might not feel like a victory.
The immediate price to the customer will be higher car prices and a less choice in vehicle size. The large vehicles that Americans have come to know and love will be harder to find and much more expensive.
Here are ten ways the new plan will affect you and me:
1. Your next car costs about $1,300 more than it would have without Obama’s plan. This is based on the government’s estimates of the cost of the technology to put you a higher-mileage, lower-polluting car. The $1,300 figure is, of course, only a government estimate and critics say it’s going to be a lot more. The government has never proven its ability to accurately estimate the cost of projects in which it is involved.
2. Used car prices are going up. New cars will cost more and may be less desirable so more people will hang onto older cars. This will reduce supply and increase demand for used cars on the market and drive up prices.
3. Pollution will not be reduced anytime soon. The worst 10% of the cars on the road cause over half the emissions. People who drive the worst 10% of the cars on the road are least likely to be able to afford newer, cleaner cars. The government is actually considering incentives for people who scrap their old cars. The older cars that stay on road (because new cars cost too much) will prevent some of the promised pollution and mpg gains.
4. A win for the automakers. They already manufacture lower-emissions cars to meet the existing California laws. Automakers hate having separate rules for California (and the dozen or so states the follow California’s rule) and the rest of the U.S. They will no longer have to make two versions of each car.
5. An even bigger win for Japanese, Korean, and Chinese automakers. Asian automakers produce a higher proportion of fuel-efficient cars already. U.S. automakers are way behind. They will have five years to catch up…but can they do it?
6. Also a win for European automakers that get another chance to show how efficient diesels can be and convince the U.S. that they are better than hybrids.
7. A win for mass transit…maybe. As cars cost more and fuel prices increase people will have more incentive to park their cars and ride the bus or train. But, will the money be available to construct these systems and where will it come from?
8. We will pay more for gas. Economists say that higher fuel prices – by which they mean more taxes – will force Americans to buy more efficient cars…if they can afford them, that is. Politicians hope that higher mileage cars will reduce oil consumption and avoid the need to punish Americans by raising taxes. However, f car mileage goes up and fuel consumption goes down tax revenues will go down with too. As that happens the government will have to either reduce spending or raise the tax rate to make up the difference. Which do you think they will choose?
9. America will be safer. By reducing demand for oil we lessen our dependency on and control by foreign nations that don’t like us and want to destroy us.
10. The government gets more control of what we drive and we get less. Only you can decide if that is a good thing or a bad thing.
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