Tuesday, May 19, 2009

“The auto industry’s refusal to act for so long has left it mired in a predicament for which there is no easy way out,” Mr. Obama said.




In announcing new mileage guidelines, the President has decisively moved to resolve a long-simmering debate about the nature of American federalism. During the hell that was the Bush years, California and 13 other states wanted to increase the mileage standard. Bush and Detroit automakers did not. Now that two of the former Big Three are on life-support and have become virtual wards of the United States, real change just might be realized.

Conservatives, of course, will be apoplectic. "How dare the Government meddle in the market", they will shriek. "Socialism", they will scream. It is worth remembering that since the days of Henry Clay's "American Plan" the national government has often taken a stake in our transportation policy-making. Was 19th Century transfer of western lands to the rail roads socialism? How about the space program? Interstate highways?

photo source: http://blog.foreignpolicy.com/files/images/080603_hummer.jpg

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