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Right Change: Obama Regulations To Shut Out 7 Million Car Buyers

None of this should surprise you. When the government picks winners and losers, there are winners and losers. When it comes to Obama’s Energy Department, the winners are Green Companies like Solyndra and the losers are, well…the American consumer. Last summer, the Obama administration announced new fuel-efficient standards for passenger vehicles and light trucks.

From the Washington Examiner:

The Corporate Average Fuel Economy (CAFE) regulations that President Obama announced last summer will make it impossible for 7 million lower income consumers to buy a new car according to a National Automobile Dealers Association (NADA) study released today.

“While you can mandate what automakers must build, you can’t dictate what customers will buy, nor can you dictate if a bank will make a loan,” New Mexico Ford dealer Don Chalmers said today.

Obama's proposed CAFE standards, which will begin taking effect in 2017, raise minimum average vehicle fleet fuel efficiency to 54.5 mpg by 2025. The Environmental Protection Agency and National Highway Traffic Safety Administration estimate that this regulation will raise the average price of passenger cars and light trucks by $3,000.

“The unintended consequences of the proposed fuel economy increases are clear,” NADA Used Car Guide analyst David Wagner said. “If the price of a vehicle goes up by the government estimate of almost $3,000, millions of people will no longer be able to finance a new vehicle.”

If we continue to allow President Obama to pick which sector succeeds in this country, we will continue to be the losers of his economic policy. 

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