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Group: nashville.general · Group Profile
Author: Brent PBrent P Date: Sep 17, 2008 22:35
On 2008-09-18, David T. Ashley e3ft.com> wrote:
> We could already have far more efficient cars on the road, but the auto
> industry has been lobbying heavily for decades against CAFE and other sane
> measures.
Why would CAFE bring about efficiency? It's just government
interference. If people wanted to buy cars the size of the Smart car (a
little more than twice my bicycle in road volume taken up as I
encountered one while bicycling today) people would buy them. CAFE is
just pointing a gun to people's heads telling them they have to buy the
kind of vehicles government approves of. The market tends to react to
these interferences in ways government cannot predict or react to.
Since everything government touches turns to sh*t, I present the result
of their market intervention, the SUV. Like other government
interventions the results are bubbles and malinvestment. Now we see the
result of that as the market has shifted from SUVs but domestic
automakers had invested heavily in building SUVs because the CAFE
intervention and other actions such as artifically low interest rates
sent them the wrong signal.
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