Thursday, July 03, 2008
The Market Works
For all the Democrats' past fuming over the reduction of CAFE standards (the requirements for car manufacturers to meet certain levels of MPG efficiency), it seems the market may be doing a better job than legislators ever could have of encouraging the production of higher mileage vehicles. And American auto makers may have shot themselves in the foot by lobbying for lower standards. GM stock is trading at less than $10 a share, a level it hasn't seen since the Eisenhower administration. (That rumbling sound you hear is my father spinning in his grave.) Meanwhile, Honda -- which happens to deliver a fleet with the best gas mileage and lowest emissions -- is the only car company showing increased sales.
If America had listened, we green-inclined folks were saying the right thing all along. Although it would have been better if we'd started working on better mileage cars and developing solar power years ago, the free market is doing a more powerful job of delivering that message.