Wednesday, July 02, 2008

Pay Attention!

Much of what is being said in the political arena is either a blantant lie or a carefully spun story that makes a candidate look better.  It is critical to actually measure what is being said with what is common sense and what is actual reality.  A great example of this is the ridiculous proposals for making cars more energy efficient.
 
I have seen statements that amount to something like: "Requiring that all cars have fuel efficiency increased by 50% by the year 2020."  Let's measure this statement with a little bit of common sense.  Consider:
  • 2020 is 12 years away.
  • 12 years ago the price of gas was $1.27, a 239% increase
  • Inflation, if we accept the traditional view (which I do not), runs at about 3-5% annually, which at 12 years, compounded at 4%, equals 60%.
Does anyone see the aburdity in the statement?  If I increase my car efficiency by 50%, but the price of gas has increased by a greater percent, and inflation has made my purchasing power weaker, I've still lost.  The statement has no value for those living in 2020 and is stated so as to sound "good" in the present.
 
Nevermind the disaster of allowing the government to regulate something else, which prevents a (formerly) "free" market to dictate the design and efficiency of cars.  If we want to drive big-ass cars, we must pay the price to drive them.  If we wish for a cheaper gas bill, we can get a more fuel-efficient car.  Actions and choices have consequences.
 
This does not even get into the falling value of the dollar and why gas prices are really rising.  But I write this to illustrate that we need to be cautious and exercise some careful investigation of what is being stated by all parties, everywhere.  Just because it sounds good and feels right doesn't make it true, practical, or a sound long-term solution.

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