Check out this headline …
There’s a theory that the trials and tribulations of the US auto industry are partially the result of fuel economy standards that the Obama administration put into place a few years back.
Those standards required the increase of fuel economy to the equivalent of 54.5 mpg for cars and light-duty trucks by model year 2025. The standards were designed to reduce greenhouse gas emissions and reduce U.S. oil consumption. But Donald Trump maintains that it’s those standards that are costing US auto manufacturing jobs. He is not only wrong, but he’s not even questioning these standards because he wants to save a bunch of shitty manufacturing jobs for the poor saps who fell for his job creation rhetoric.
It’s all a ruse.
He might as well just tweet that by eliminating those fuel economy standards, he’ll be able to save 30 million jobs.
Look, the real reason he’s “reviewing” these standards is because these standards are not in HIS best interests.
You see, anything that reduces oil consumption is bad for the oil industry. And Trump and Rex Tillerson aren’t having any of that. Trump’s so far up the ass of Exxon (NYSE: XOM), he’ll do just about anything to ensure the American driving public spends as much as possible on petroleum products.
Good for Trump, good for Rex, good for Exxon.
Not so great for you.
The Government Still Picks Winners and Losers
When Obama’s fuel economy standards initially came out, U.S. automakers claimed the rules were too expensive and would cost American jobs. Yet here we are today, with the most American-Made car in the market being one that actually exceeds Obama’s fuel economy standards. It’s called the Tesla Model S, and it’s built by a company that’s had no problem building a successful business while employing U.S. employees working in a US manufacturing facility.
Of course, this doesn’t mean I necessarily agree that such fuel economy standards should be in place. The truth is, I’d rather see a real free market dictate fuel economy, not the actions of the government. But there is no real free market when it comes to transportation and energy. Never has been.
But that’s a debate for another time.
The bottom line is that repealing Obama’s fuel economy standards isn’t going to do a damn thing to save American auto manufacturing jobs. Most of which, by the way, are being replaced by robots, which means these jobs are never coming back.
If Trump really wants to help with domestic job creation, he should help enable a real free market where the government doesn’t pick winners and losers. But with Rex Tillerson and a bunch of wealthy Russian oil barons dictating policy changes in the White House, this is unlikely to happen.
Invest accordingly.
