Thursday, May 15, 2008

That Was Fast!

A 230 mpg car?!? What should surprise us more is how fast this will arrive. I'm pretty sure the rhetoric is that we are 10 years out before we see any significant reduction in fossil fuel use. But as soon as 2010 230mpg. What can we all learn from this? In desperate times innovations and entrepreneurs will come from everywhere to fix a problem. Now, if we can keep the governments hands out of it.

Speaking of the government, what do you suppose will happen to gasoline taxes as mpg increases and less fuel is used. Keep in mind that those taxes are used to help keep infrastructure from deteriorating. Logic tells us that the less gas people use, tax revenue will drop off. Then what? Imagine this. In 2010, there is a massive shift to 230 mpg cars. Instead of paying an average of $10.00/ month in taxes, that might shift to $2 max. But remember, driving habits will probably increase and more drivers will hit the road- then what?

As the article suggests, this VW is very tiny and may not be as safe as a SUV or mid-sized sedan. I wonder if the government will ban the car for safety or loss of tax revenue? Or will new regulations come from the bootleggers and Baptists?

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