Yesterday, the Bush administration leaked the bad news that it will likely abandon a proposal to require better gas mileage for the largest SUVs. The reason will come as a surprise to no one: because it might hurt the “fragile bottom line” of many American automakers. See, the funny thing is that CAFE requirements that apply to cars and light trucks do not apply at all to the largest SUVs classed as heavy trucks. In other words there are no requirements whatsoever for Hummers and Ford Excursions and Lincoln Navigators. (The original CAFE regulations were drafted in 1970 and really haven’t been changed since. In 1970, “heavy trucks” were almost entirely commercial. Today, there’s one in almost every driveway in Eden Prairie.) Thus, it also comes as no surprise that sales of these types of vehicles has softened this year, with the meteoric rise in gas prices.
These vehicles were all gravy for automakers, and they will continue to be– the profit margins on the largest vehicles far exceeds those for more reasonable passenger vehicles. If automakers lose a few down-market consumers who are concerned about the cost of running a vehicle that averages in the single digits MPG, so what? The rest of the supercharged upper-class, enjoying the fruits of this amazing economic recovery we keep hearing so much about, will be glad to pay more at the pump. But they could be required to spend more at the dealership too, in order to subsidize better mileage as required by their federal government. The conservative monopoly in public office today can surely be expected to argue against penalizing those who can most afford to show off their banking muscle with the best form of American conspicuous consumerism ever devised. But the more direct, emotional takeaway from all this seems to be that industry is more important than consumers. Americans are, of course, themselves to blame for gas-guzzling behemoth SUVs, and they should lay in the bed they made for themselves. God knows, it is not the role of government to require more responsible behavior by–well, requiring it.
There are some interesting political ramifications of the present conundrum at the gas pumps. When gas prices soar, the people who are most hurt by it are the people who are most dependent on automobiles–professionally, socially, economically–are in the deep-red Western states. These are the people who have been trained to vote against their own best interests by appealing to their own worst instincts. Will the good people of Wyoming see out-of-control gas prices (and, by the way, record profits in the pockets of American gas producers) as a good reason to increase subsidies and tax credits to oil companies? Will they understand that insane gas prices (on a par with what our effette friend in Europe pay, but of course they’re into that whole soft-headed mass-transportation thing) will incentivize alternative, renewable energy sources?
Well no. They want lower gas prices and they want them now, and pretty soon they’ll start blaming the only person they can think of to blame–a president with generational ties to the oil industry.