Real CAFE is needed, market forces are NOT enough
I was just reading a joke of an article by Forbes called We Don't Need No Stinking CAFE
"The fact is that it doesn’t really matter what the government mandates. Market forces are already creating incentives to make more fuel-efficient vehicles. Market forces determine what kind of vehicles consumers want to buy. That in turn dictates what kind of vehicles Detroit makes," states the author.
If market forces determine what customers want, what is the the purpose of marketing? Why does GM spend $3 billion every year to market its vehicles, yet it continually loses marketshare?
Marketing is about perception - not whether that perception is true or not. Marketing, not just market forces, determine "what kind of vehicles consumers want to buy." Remember the Pet Rock? Did market forces create that success?
More important, the politics of gasoline are not only about the cost. Foreign oil dependency has far greater implications than just the cost of gasoline. Anybody who doesn't think there is a link between terrorism and foreign oil has their head buried in the sand.
Furthermore, you can be certain that many at Forbes have made a good deal of money off of the run up in oil through investments - that's their FREE market. Do they care about what is good for America, or what is good for their wallets?
The price of oil might not be a concern for the government, but the security of the Nation; however, is their prime concern. The new CAFE standards are not nearly enough, and they should have been enacted at least a decade ago - something market forces could never have done.
"The fact is that it doesn’t really matter what the government mandates. Market forces are already creating incentives to make more fuel-efficient vehicles. Market forces determine what kind of vehicles consumers want to buy. That in turn dictates what kind of vehicles Detroit makes," states the author.
If market forces determine what customers want, what is the the purpose of marketing? Why does GM spend $3 billion every year to market its vehicles, yet it continually loses marketshare?
Marketing is about perception - not whether that perception is true or not. Marketing, not just market forces, determine "what kind of vehicles consumers want to buy." Remember the Pet Rock? Did market forces create that success?
More important, the politics of gasoline are not only about the cost. Foreign oil dependency has far greater implications than just the cost of gasoline. Anybody who doesn't think there is a link between terrorism and foreign oil has their head buried in the sand.
Furthermore, you can be certain that many at Forbes have made a good deal of money off of the run up in oil through investments - that's their FREE market. Do they care about what is good for America, or what is good for their wallets?
The price of oil might not be a concern for the government, but the security of the Nation; however, is their prime concern. The new CAFE standards are not nearly enough, and they should have been enacted at least a decade ago - something market forces could never have done.
Labels: Ford, Foreign Oil Dependency, GM, Hybrid Vehicles, toyota
posted by Dahcredyns at
7:01 AM
2 Comments:
I agree 100%. The cost should make no difference for the U.S. We need to be thinking about oil independence and the only way that will ever happen is to boost gas mileage.
I think saying "we don't need CAFE" is a little like saying "we don't need speed limits, or smog laws."
Neither would be needed if we all acted rationally (and compassionately) all the time ... but we know ourselves. We know we need a cop. End of story.
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