As it stands now – and things could change quickly – Pres. Obama is calling for the inclusion of $600 million in the proposed stimulus plan to fund the government’s purchase of new, fuel-efficient vehicles. In fact, there’ve been a number of auto-centric elements proposed or actually included in the stimulus package. One “cash-for-clunkers” proposal, to encourage Americans to replace older vehicles with newer, greener products, has been withdrawn. But there’ a good chance, with the President’s support, that as much as $2 billion could be included for advanced battery research.
Such proposals are taking heat from minority Republicans, Senate Minority Leader Mitch McConnell, of Kentucky, calling the government fleet replacement program “wasteful spending.”
In an energized speech to Congressional Democrats, Pres. Obama, sounding like he was back on the campaign trail, spoke out loudly for the stimulus package, Thursday night. And in another speech, to the Energy Dept., he lambasted GOP lawmakers for calling the green car program “pork.”
“You know the truth,” said Obama. “It will not only save the government significan money over time, it will not only create manufacturing jobs for folks who are making these cars, it will set a standard for private industry to match.”
Who do YOU agree with? Legitimate boon or boondoggle? We’d like YOU, the readers of TheDetroitBureau.com to express their own opinions.
After eight years of hearing about how tax cuts will cure the ills of the economy, I’d like to see Republicans sing from another hymnal. We’ve had eight years of cuts and we have a recession. I don’t know that buying older, less-efficient vehicles needs to be the government’s job, but finding some way to stimulate the economy while greening up our nation can’t be a bad idea.
Well isn’t it time the government at least tried to lead by example? Perhaps along with this initiative, they should be mandated to drive the highest fuel efficiency vehicles domestically produced. According to the U.S Dept of Energy only about 20% of the federal vehicle fleet are are AFVs…
To put things into perspective, even if GM got the entire $600 million, it would account for a fraction of 1 percent of the company’s total revenues. It wouldn’t make that much more of an impact on Chrysler, in fact. But Obama does have a point about saving fuel, longer-term, which will trim government costs. It will set an example, and, we’d hope, encourage sales of more fuel-efficient vehicles, at a time when cheap gas is leading Americans to yet again return to the guzzlers.
Paul A. Eisenstein
Bureau Chief, TheDetroitBureau.com