Federal Government Wants to Decide Which Car Models Americans Drive

When it comes to which model of vehicle Americans should buy, the federal government knows best — or believes it does. Not content with merely requiring that vehicles get better fuel economy, Congress is now considering legislation that favors the newest fad in green cars — the plug-in hybrid. According to a report in the Detroit Free Press, a Senate committee yesterday approved two bills aimed at promoting hybrid vehicles, one of which would expand a $25 billion loan program aimed at fuel-efficient vehicles and the other a $3.6 billion bill sponsored by Sen. Byron Dorgan, D-N.D., aimed specifically at plug-in hybrids.

Perhaps we have moved so far away from free-market capitalism that is has not occurred to some in Congress that it is not their proper role to favor one model of vehicle over another, particularly in light of a potential conflict of interest when the federal government owns General Motors, which has much riding on their planned October launch of the Chevrolet Volt plug-in hybrid. To be fair, General Motors is not the only car company to benefit from the feds' generosity with taxpayer money: $8.6 billion in loans have already been awarded to Ford, Nissan, Tesla, Fisker and Tenneco.

It remains to be seen if plug-in hybrids with their higher price and limited range will be popular with car buyers, but is clear they are a hit with many in Congress who are willingly to spend taxpayer money to help ensure their success.

Permission to reprint this blog post in whole or in part is hereby granted, provided that the author (or authors) and the Mackinac Center for Public Policy are properly cited.