Pros and Cons of Obama’s New Plan For Fuel Efficiency

Our nation’s automotive industry is currently falling apart at an astounding rate. Because of this, leading auto manufacturers in the U.S. have to make some drastic changes – and in some cases this may mean a complete restructuring and overhaul of the way they operate and do business on a daily basis. In light of this dilemma, President Barack Obama has decided to step in and take matters into his own hands; at least where the environmental impact of our vehicles is concerned.

In a speech given on Tuesday, May 19, the president challenged U.S. automakers to create more fuel-efficient, environmentally friendly vehicles. Obama’s plan is to cut green-house gases considerably; 20% by 2020, 42% by 2030, and 83% by 2050. Additionally, President Barack Obama wants to make sure all new vehicles being produced by 2016 meet a new minimum requirement of 35 miles-per-gallon. While all this may sound great in concept, for many, including our nation’s top vehicle manufacturers, this new proposed bill is really a double-edged sword.

For starters, it’s going to cost our automakers millions of dollars to convert and upgrade their existing technologies, and it will cost them even more to invest in the research and development of low-carbon electricity and cleaner, more efficient fuels. And with the financial crisis the automotive industry is already facing, it’s not clear where they will get the capital needed to begin this process – and some manufacturers simply can’t afford to spend time on these new innovations, either.

But of course the automotive industry aren’t the only ones who are struggling financially – as you are probably well aware of, more and more families and individuals are having quite a bit of financial problems as well. And what many supporters of this proposed bill don’t realize is the fact that developing cleaner and more fuel efficient cars will actually increase the price tag of new vehicles – as much as an additional $1,300 for some. Opponents of the bill, however, warn of a much higher added cost – maybe even to the tune of $6,000.

Fuel Efficiency Will Cost Taxpayers?

And that’s not all – even some of President Obama’s own colleagues are opposed to the bill. Director of the Office of Management and Budget, Peter Orzag suggests that reducing green-house gases will actually reduce average yearly incomes for families and individuals, as well. Furthermore, our nation’s economic output is also reduced by 2% to 3% for every 1% our taxes are increased. And who do you think is going to foot the bill for a project of this magnitude; the American taxpayer, of course.

However, supporters of President Obama’s proposed bill see this is a golden opportunity to make a solid investment in our nation’s future. If American automakers can begin producing cleaner and more fuel-efficient vehicles in a timely manner, and make them available at a price that the general public can afford, we might actually be able to revive our economy and start on the road to recovery as soon as possible.

Related Articles of Interest:

1. Ford Supports Obama’s Plan From Businessweek.com: Ford Motor Co. Chairman Bill Ford Jr. says his company is well positioned to meet fuel economy standards proposed by President Barack Obama....
2. $216 Million Proposed for New Vehicle Technology Research A new bill proposed by Representative Gary Peters, Democrat from Michigan, could potentially provide an additional $216 million for new automotive technologies. The legislation is...
3. Monitoring Fuel Efficiency with the JET Performance Monitor Although the price of gasoline has recently been on the decline, it is still far more expensive than it was just a few years ago. ...
4. Looking Forward to Energy Alternatives Now that we have a new President-elect ready to take office next year, you may be wondering what he has in store for us in...
5. GM On Board with Obama Fuel Standards General Motors has given its support for President Obama’s strict fuel standards, and plans on following suit to manufacturer vehicles with better mileage. From Kansascity.com:...