Government-Mandated Fuel Standards

This post comes from one of The Wall Street Journal‘s earlier debate/point-counterpoint pieces.

Carol Lee Rawn, who runs the Transportation Program at Ceres, made her argument in favor of this Government intervention into the free market (many of you can guess my position on fuel standards set by Government rather than by market).

First, the standards benefit consumers and the economy. The standards set different mileage goals for different sizes of cars and trucks.

Umm, no.  The cars and trucks start out with differences in their intrinsic mileages; the standards don’t affect those differences in any qualitative way.  What they do, though, is run up the costs of all cars and trucks, reducing the ability of consumers to buy them in the first place.

Second, to remain competitive, the Big Three auto makers of Detroit must offer more fuel-efficient vehicles. During the last global spike in oil prices (when fuel-efficiency standards had essentially stagnated for years), the Detroit Three found themselves overinvested in gas-guzzling vehicles they couldn’t sell.

Couple things on this.  First, to remain competitive, the Big Three—and the others in our auto industry—have to make cars and trucks that folks want to buy and drive, not what Government will permit them to choose from.

The second thing points up the interlocking nature of a modern economy; individual factors cannot be taken in isolation from each other.  Were Government to get out of the way of the energy production industry, its departure would couple with the vasty seas of oil and natural gas right here in North America and the production thereof, and this would vastly reduce the likelihood of another spike, global or otherwise, in oil prices.  Which would render this factor a straw man.

Third, maintaining strong fuel-efficiency standards locks in growth for innovative suppliers to the auto industry.

This is just more of Government determining who will be allowed to succeed and who will be required to fail in our economy.  Furthermore, these suppliers have no more inherent right to exist than did buggy whip suppliers who’d innovated to provide bigger, better, more flexible whips.  Like those whip suppliers, who moved on to provide horns and gas pedals and etc to the automobile manufacturers that overwhelmed the buggy manufacturing industry, these suppliers can, in a free market, prosper just fine by moving on to supply other items to a reviving auto industry.

The bottom line: making great vehicles that go farther on every gallon of fuel is good for the auto industry and good for America.

No, the bottom line is letting Americans decide for themselves what’s good for them.  Vehicles that go farther on every gallon of fuel are part of that.  So are vehicles that last longer.  So are vehicles with better entertainment systems for the passengers.  Most importantly, so are vehicles made to American buyers’ wants and needs, not to Government specs.  Government has no legitimate role in dictating to us what our choices must be.

Obamacare Subsidies

In a case involving Federal government payments to Obamacare insurers to “reimburse” them for health coverage plan discounts the government requires those insurers to provide low-income plan buyers, a Federal district court judge in the United States District Court for the District of Columbia (which gives the judge’s ruling nationwide jurisdiction) ruled those payments to be unconstitutional—the payments had been being made even though no funds had been appropriated for the purpose by Congress.

Following President-Elect Donald Trump’s election, an appeal of the ruling to the DC Circuit has been HIAed at the request of the House of Representatives, one of the litigants in the original case at trial.  The pause was requested—and granted—to give the incoming Trump administration time to set up its own actions regarding Obamacare and so render the present case moot.

Now two DC lawyers have filed an “emergency” motion on behalf of two California citizens (can you say, “Yay! Fees!” boys and girls?) to get the appellate court to actively settle the matter, in so far as an intermediate appellate court can settle anything.  The California citizens’ argument, through these lawyers goes something like this:

suspending the litigation until during the power transition would essentially allow the lower-court injunction against the Obamacare subsidies to stand. They say they expect that a Trump-led Justice Department would either dismiss the Obama administration’s appeal or strike a settlement with Republicans allowing the injunction to take effect at some later date.

Litigants are allowed to do that, and it’s irrelevant to the matter at hand.  This case, of the question of constitutionality of the reimbursements, has nothing intrinsic in it concerning the right of litigants to it to ask for a pause pending nearby government action that would render the case irrelevant, nor is there anything present that would prevent a court from granting that pause based on that same nearby pending action.  Indeed, the court would be wasting its time arriving at a ruling when that ruling would soon become irrelevant.

The citizens’ argument continues:

Either way…the effect would be “devastating consequences for the individuals who receive these reductions, as well as for the Nation’s health insurance and health care systems generally.”
…without those payments to help offset deductibles and out-of-pocket costs, more insurers likely would drop their participation on the marketplaces. The exchanges, a centerpiece of the health law, would further wither.

That’s certainly a worthy discussion to have, and the nation has been discussing it for the last six years.  However, it’s a purely political discussion, and it has no place at all in a court.  This argument has no bearing on the case before the DC district or appellate court, and it has no bearing on the Circuit’s decision to hold the appeal in abeyance pending Trump administration action (or inaction).

The citizens also raised this item:

The enrollees essentially argue that if they were allowed to intervene and were to succeed in overturning the injunction against the subsidies, Republicans could no longer say their hands are tied by a court order.

That there is a true fact.  And it’s just as irrelevant as the citizens’ foregoing arguments.  The discussion and the question of whether the subsidies ought to be made are political ones, not legal ones, and so the discussion and associated debates are the exclusive province of the political branches of government: the Congress, ultimately in conjunction with the President.  Whose hands are tied and by what is not a question for a court of law.  Full stop.

More Obama Fiat

And the failures just keep coming.

This time, it’s President Barack Obama’s (D) effort to sabotage the oil industry as thoroughly as he’s done the coal industry.  Obama’s latest bit of I Know Better And Congress Be Damned is an Executive Order that is intended to ban

federal offshore drilling and mineral leases on some 3.8 million acres from Virginia to Maine and 115 million acres off the coast of Alaska, including some of the world’s great untapped repositories of hydrocarbons.

And he’s bragging that he thinks the move is permanent.

It’s a laughable as it is delusional.

A Disingenuous EPA

Talk about cost shifting.

The EPA is proposing a rule that will shift the cost of complying with its diktats—Superfund cleanups this time—onto private enterprise.  The rule

would cost the [mining industry] industry $171 million a year and save the EPA $527 million over 34 years

were the rule to be finalized.  Notice that: The EPA would save $527 million dollars over the 34 years–$15.5 million per year—while those $171 million per year inflicted on the industry works out to more than $5.8 billion over the 34 years.  And that’s per the EPA’s own Regulatory Impact Analysis.

Never mind that the EPA already has cost shifted at one environmental disaster that it caused, when it’s people blew out a closed mine in Colorado through their own idle carelessness and have yet to pay for the damage done and the cleanup.

Merry Christmas from the EPA.

A Bad Deal in the Offing

The Wall Street Journal had a piece on a potential deal concerning the FCC.

We hear Majority Leader Mitch McConnell and Democrat Harry Reid are negotiating for an FCC transition in which Chairman Tom Wheeler would leave in January. GOP leaders would then reconfirm two commissioners: Democrat Jessica Rosenworcel, whose five-year term has expired; and Republican Ajit Pai, who is not up until next year and is in the mix to be the next chairman.

The WSJ suitably addressed the foolishness of the overall deal.

I have a related concern.  Why deal with Senator Harry Reid (D, NV) at all?  That man is wholly untrustworthy, and besides, he’ll be gone in January.  Why deal with the Senate Democrats at all?  As a group, all they’re interested in doing is obstructing anything Republican.  Senator Tim Kaine (D, VA) has said he’d do everything he could to prevent Republicans from acting.  So has Senate Minority Whip Dick Durbin (D, IL).  So has Senate Minority Leader-in-waiting [sic] Chuck Schumer (D, IL).  And on and on.  These folks’ word cannot be taken as reliable except as they promise to get in the way of the nation’s business for their own personal political gain.

And, courtesy of Reid’s prior dishonesty regarding the filibuster, most of the Senate’s nearby business doesn’t need these obstructionists’ participation to conclude in any event.