Fuel Cell Vehicle (Credit:Getty Images)
Of course, the auto makers are effectively owned by the federal government, so it would be surprising if they weren't supportive of their new boss. However, they make a good point. Sometimes it is difficult for manufacturers to make the investment in plants and equipment without a federal mandate. (Source: AFP, GM, Chrysler Hail Obama Auto Emissions Standards, May 19, 2009)For more on the standards, see Obama Sets Historic Fuel Emissions Standards by Robert Longley, the About.com Guide to the U.S. Government.
What It Means to You
The standards have several positive benefits for you. First, it will help cut back on gas bills at the pump. Second, there will be fewer job losses on down the road as U.S. car companies become more competitive. Third, it will improve air quality and help with global warming.Government ownership of GM and Chrysler have already provided these additional benefits:
- The government is backing all new car warranties.
- The Economic Stimulus bill allows new car buyers to deduct all car sales and excise taxes. For details on this program, see IRS Pushes New Car Tax Break.
- Part of the $700 billion EESA fund loaned $24.5 billion to GM and Chrysler to prevent bankruptcy last fall.
Comments
Kimberly,
Normally I agree with your excellent ideas, but in this article, you’re saying that socialism is a better economic system than capitalism. But you must agree that capitalism has won out over socialism in most countries. Even China is using capitalism now and succeeding because of it.
I don’t agree with your idea that cars made by the government will be more readily accepted by the public, than cars made by entrepreneurs who made marketing surveys to determine what the public wanted.
Norm