CAFE standards

I find the whole discussion of the Obama administrations new rule on CAFE standards to be strange. First, they talk as if these restrictions impose no costs on consumers. Second, as if they will have significant environmental effects. And third, that they will make it better for the auto industry. Perhaps for the Japanese automakers as the domestics are driven down even further in market share and profitability. But since the Federal government owns Chrysler and soon will own GM I guess they can survive even without making profitable cars.

Fortunately, there is an interesting analysis of the rules here.