Tuesday, March 3, 2009

Green-Subsidy Strings

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President Obama has long promised $150 billion in industry subsidies to develop alternative fuels, including Detroit Three production of alternate-fuel vehicles to meet federal fuel mandates.

White House Deputy Budget Director Robert Nabors confirmed yesterday that that the subsidy is contingent on revenues from the president’s cap and trade tax. No cap and trade, no $150 billion.

The White House was not forthcoming with details, but the move points a gun at Detroit’s head: Support our cap and trade scheme or no green subsidIes for you.

The tactic is more evidence of the political machinations that carbon regulation introduces into the body politic. To receive the promised medicine, Detroit must first drink Washington’s poison. [snip]

Cap and trade will

“devastate jobs in manufacturing states”

Rep. Mike Rogers (R., Mich.) has said. It is a bipartisan sentiment here as both of Michigan’s leftist senators, Levin and Stabenow, voted against Lieberman-Warner last year.

The nationalization of the U.S. auto industry is a two-way street: In return for Washington dollars, the industry will be expected to support Washington’s policies.

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Obama may throttle, not retool, family cars

President Barack Obama's recent action to "help America's automakers prepare for the future" just might jeopardize the last vestiges of excitement and interest that have attracted customers to dealer showrooms for generations.

(snip)They translate to a 43 mpg average for cars by 2016...2016 might seem well down the road to an environmentalist, to an auto designer, it's next month...family of five wants to take a vacation together, they'd better plan on taking two cars...

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