Many Americans have chosen the SUV as their mode of transportation and those that control the oil market are absolutely loving it. The cost to fill up an SUV compared to a small economic- friendly vehicle is taking its toll on those consumers. With the prices being at the current, there may no longer be an economic-friendly vehicle, no matter what the size. In an article written in the Salt Lake Tribune, the author writes that "market constraints underlying high and volatile energy prices suggest that higher oil prices could be here to stay." The higher oil prices may have an impact on your next vehicle purchase, but American's are a "drive-at-any-price" culture and we will still continue to pay for the gas because of our dependence on our vehicles. With our culture being so dependent of car's, those that own and control the oil industry will continue to reep the reward and we will continue to pay the high price.
This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
10/31/2004
10/30/2004
Kerry and Bush Tax Difference
The largest topics during this election have been foreign policy, economy, health care, and military. When economy comes up and possible solutions arise Kerry and Bush have seemingly night and day views when it comes to tax cuts. The truth is that Kerry supports all of Bush's tax cut except for the cut for the ritch. However, the difference is not astounding according to Clint stretch, director of tax policy. A family consisting of two children earning an annual household income of $250,000 can expect to pay $1,300 more under Kerry's tax plan. The same family making an annual income of $180,000 would see no change under John Kerry's tax platform. However, Kerry promises that the ritch will be supplying the military with additional aid, healthcare reform along with more affordable healthcare coverage, and cut the deficit by 50% in four years. Kerry's arithmatic in terms of costs for his platforms and the inflow from his tax plan seem far fetched. There will be no change from Bush's tax plan on the poor and middle class.
www.msnbc.msn.com/id/6336867
www.msnbc.msn.com/id/6336867
10/29/2004
Utah Power
As of April 1, 2005, you can expect your power bill to go up by about $4.75 a month. The Public Service Commission (PSC) is experimenting on how electricity rates are set for Utah consumers. Utah Power is seeking permission to raise its rates 11 million. The full story about this is published in the Salt Lake Tribune.
The main difference in this new procedure on trial, is that the rates will be based entirely on projected costs that the utility expects to incur in the 12 months after the new rates go into effect. Utah Power believes using a so-called "future test year" to determine rates, instead of basing them on historical costs, the traditional method used by the PSC, will be more fair to the company as well as its customers. They say that these projected costs will eliminate the problem of "regulatory lag;" which is when a utility spends money on behalf of its customers but must wait for the PSC to approve those costs.
My question, along with everybody elses', is "Are these projected costs reasonable?" I thought that historical costs were used to determine projections. So what is making the difference here, and why are our electricity bills going up almost $5 a month? That's sixty bucks a year!
The main difference in this new procedure on trial, is that the rates will be based entirely on projected costs that the utility expects to incur in the 12 months after the new rates go into effect. Utah Power believes using a so-called "future test year" to determine rates, instead of basing them on historical costs, the traditional method used by the PSC, will be more fair to the company as well as its customers. They say that these projected costs will eliminate the problem of "regulatory lag;" which is when a utility spends money on behalf of its customers but must wait for the PSC to approve those costs.
My question, along with everybody elses', is "Are these projected costs reasonable?" I thought that historical costs were used to determine projections. So what is making the difference here, and why are our electricity bills going up almost $5 a month? That's sixty bucks a year!
Southern Utah Wilderness and Our Economy
Proposals to extend wilderness protection to significant additional lands in Utah are regularly criticized on economic grounds. This economic conclusion is based upon two assumptions: wilderness locks up natural resources and the primary reason for wilderness is to provide free recreational opportunities.
The primary economic activities that would be restricted by wilderness classification is commercial extraction of timber and minerals. In southern Utah, it is primarily mineral extraction that would be restricted. In addition, there are fears that grazing would be restricted. the assumed negative impact of wilderness designation is tied to the "locking up" of those minerals and forage. When mining and grazing are analyzed in the context of the overall Utah economy, this is seen to be a seriously exaggerated claim. The transformation of the Utah economy from heavy reliance upon extractive natural resource use is well underway and it will continue. The Utah Office of Planning and Budget projects that employment in agriculture and mineral extraction will continue to shrink as a percentage of the total Utah workforce over the next twenty years despite an optimistic projected "mini-boom" in the mineral extraction industries.
Protected landscapes have economic impacts far beyond their borders because they provide the high quality environmental backdrop that makes an area an attractive place to live, work, and do business. In that sense, the protected landscapes become an important part of an area's economic base and economic vitality. This is the reason that wilderness counties tend to show such dramatic economic vitality.
Wilderness protection does not impoverish communities by locking up resources. Rather, it protects the economic future of those communities by preserving high quality natural environments that are in increasing demand across the nation.
The primary economic activities that would be restricted by wilderness classification is commercial extraction of timber and minerals. In southern Utah, it is primarily mineral extraction that would be restricted. In addition, there are fears that grazing would be restricted. the assumed negative impact of wilderness designation is tied to the "locking up" of those minerals and forage. When mining and grazing are analyzed in the context of the overall Utah economy, this is seen to be a seriously exaggerated claim. The transformation of the Utah economy from heavy reliance upon extractive natural resource use is well underway and it will continue. The Utah Office of Planning and Budget projects that employment in agriculture and mineral extraction will continue to shrink as a percentage of the total Utah workforce over the next twenty years despite an optimistic projected "mini-boom" in the mineral extraction industries.
Protected landscapes have economic impacts far beyond their borders because they provide the high quality environmental backdrop that makes an area an attractive place to live, work, and do business. In that sense, the protected landscapes become an important part of an area's economic base and economic vitality. This is the reason that wilderness counties tend to show such dramatic economic vitality.
Wilderness protection does not impoverish communities by locking up resources. Rather, it protects the economic future of those communities by preserving high quality natural environments that are in increasing demand across the nation.
Delta Takes One Step Away From Bankruptcy
Everyone knows the woes of Delta airlines. They have been on the brink of bankruptcy for a while now with another $651 million loss in the third quarter. Strategies to put their heads securely above water have included salary concessions from their 7,000 pilots, cutting 7,000 employees, and offering notes to investors that are collateralized by debt-free aircraft, simulators, and other equipment.
It looks that just yesterday Delta took a great step away from bankruptcy as it appears the pilots have come to an agreement with management allowing for $1 billion in concessions. While this is good news, it only skims the top of the lake of debt that Delta has incurred. Of course, Salt Lake's economy will likely benefit from the closing of Delta's Dallas hub which will expand operations in Salt Lake.
It looks that just yesterday Delta took a great step away from bankruptcy as it appears the pilots have come to an agreement with management allowing for $1 billion in concessions. While this is good news, it only skims the top of the lake of debt that Delta has incurred. Of course, Salt Lake's economy will likely benefit from the closing of Delta's Dallas hub which will expand operations in Salt Lake.
Are Consumer Cost of Goods About to Rise?
In a recent article by Andrew Ward, the trucking industry was highlighted. Currently, drivers are not being adequately compensated for their work and consequently there is a problem of supply not meeting demand when it comes to new drivers entering the industry. Historically, consumers have had lower prices at firms such as Target, Wal-mart and many thousands of other places due to the fact that industry drivers have had the burden placed on their wages. This could be a real problem if we lose quality drivers that aren't willing to struggle to make ends meet any longer.
Many people in our society do not realize what it takes to get these items into our homes and often times we take that luxury for granted. Drivers are not fortunate enough to enjoy a quality of life that most of us have come to demand. True, they ultimately must make a choice as to whether or not they want to continue doing what they do, but the answers that will rectify this situation will not just be to simply ignore their needs and demands. With supply growing at 1% and demand for new drivers growing at 3% annually, something needs to be done soon in order to remedy this situation. If we were all faced with the choice of not getting goods in a timely fashion or paying drivers what they deserve, it would be an easy choice for many when consumer goods suddenly aren't on the shelves in our favorite department stores.
Many people in our society do not realize what it takes to get these items into our homes and often times we take that luxury for granted. Drivers are not fortunate enough to enjoy a quality of life that most of us have come to demand. True, they ultimately must make a choice as to whether or not they want to continue doing what they do, but the answers that will rectify this situation will not just be to simply ignore their needs and demands. With supply growing at 1% and demand for new drivers growing at 3% annually, something needs to be done soon in order to remedy this situation. If we were all faced with the choice of not getting goods in a timely fashion or paying drivers what they deserve, it would be an easy choice for many when consumer goods suddenly aren't on the shelves in our favorite department stores.
Mid-size Sedans or Tanks?
When you drive your car down the road do you ever think about what might happen if somebody collided with you? Does your car have the necessary safety features to keep you alive? Most studies you see about car safety tests demonstrate what might happen in a head on collision, but according to an article I read on Dateline NBC, “The risk of dying or being seriously injured, if you're struck in the side right where you're sitting is much higher than the typical frontal crash.”
The article reports on an IIHS side impact crash test results study. This study smashed different mid-sized sedans with a simulated SUV force on the driver's side of the car. Most of the cars tested didn't receive very good marks, implying that today's cars are not safe enough. Studies like this can really hurt the image that a car company may be trying to portay. The only way the company can keep its image is to spend more money trying to make its car more safe. Should we really have these types of programs that show us how unsafe our cars are? In my opinion we shouldn't.
The entire notion of trying to make cars safer reminds me about the "seat belts cause more accidents" scenario. If we make our cars more and more safer, we will begin to drive more and more unsafely. Where does it all stop? Before you know it the only way to get to work safely will be to drive a tank there.
The article reports on an IIHS side impact crash test results study. This study smashed different mid-sized sedans with a simulated SUV force on the driver's side of the car. Most of the cars tested didn't receive very good marks, implying that today's cars are not safe enough. Studies like this can really hurt the image that a car company may be trying to portay. The only way the company can keep its image is to spend more money trying to make its car more safe. Should we really have these types of programs that show us how unsafe our cars are? In my opinion we shouldn't.
The entire notion of trying to make cars safer reminds me about the "seat belts cause more accidents" scenario. If we make our cars more and more safer, we will begin to drive more and more unsafely. Where does it all stop? Before you know it the only way to get to work safely will be to drive a tank there.
10/28/2004
The Right Price
I have had my eye on a pair or Wilson Gold Seal figure skating blades for months. They are really the best blades out there...a solid base, tapered blade with a huge toe pick and the rocker is in just the right place to really spring up into your jumps and they have great balance on spins. The world champion wears these of course and I want some too. The problem is they cost around $500. (Boots to mount the blades on are between $500 and $600.)
Last week a pair of these delicious blades (in my size no less) were auctioned off on e-bay for around $150 !!! That is a price I would be willing to pay. What if everything were auctioned off, would more sales/profit be made? If the price these blades fetch on e-bay is this low maybe manufacturers will have to lower their prices? These dream blades are actually made out of the same materials as cheaper blades but they are in high demand because they are worn by skating stars. Maybe they will go out of style and then I can get some.
Demand really does push the prices up on goods :(
Last week a pair of these delicious blades (in my size no less) were auctioned off on e-bay for around $150 !!! That is a price I would be willing to pay. What if everything were auctioned off, would more sales/profit be made? If the price these blades fetch on e-bay is this low maybe manufacturers will have to lower their prices? These dream blades are actually made out of the same materials as cheaper blades but they are in high demand because they are worn by skating stars. Maybe they will go out of style and then I can get some.
Demand really does push the prices up on goods :(
What's New in the Market 10/28/2004
After two and three quarter days of trading the bullish rally that was seen has now taken a bearish turn. The slip in oil prices gave stimulation to the market. However, growing concerns regarding the oil price relief has grown to a worry. Mendelson a well followed analyst suggests that this decline in prices is likely do to a large sale of gas by a large player and we might see prices surge to$56 a barrel. Exxonmobil has posted large third quarter profits, but not large enough to offset the news of falling oil prices. Pfizer is down .8% as the drug maker’s board has approved a $5 billion stock buyback. DaimlerChrysler swung a third quarter profit. However, the SEC is filing a minor investigation after an employee of the company reported an allegation. The US dollar has depreciated against the Yen and Euro which is both a negative and positive. The positive aspect is that American exports will be able to be bought a bit cheaper, making American goods more affordable to oversea markets.
http://biz.yahoo.com/cbsm-top/
http://biz.yahoo.com/cbsm-top/
Fed Reports Continuing Economic Growth
Despite many economic concerns, the U.S economy continues to grow. Surveys of business activity and data collected from the fed’s 12 regional banks gave evidence of a growing economy. “Economic activity continued to expand in September and early October,” the fed said.
At this point in time Analysts are speculating a raise in interest rate. The central bank will likely push up rates for a fourth time this year to guard against inflation pressures. The fed argues that the economy should grow at a decent pace even if there are some potholes along the way.
The fed also has speculated that the rise in oil prices have somewhat stymied the progress of the economy. However, the fed did not signal concern that this year’s oil price surge will be catastrophic enough to send the economy into a recession as it did in the 1970s and 1980s.
Other news regarding commerce and home sales were optimistic. Big ticket sales items in commerce were up a couple points, as were home sales. Some 2.7 million jobs that were lost in the manufacturing sector since 2000 have shown signs of rebound. On a final note farmers in most parts of the country were having a good year.
http://biz.yahoo.com/ap/041027/economy_12.html
At this point in time Analysts are speculating a raise in interest rate. The central bank will likely push up rates for a fourth time this year to guard against inflation pressures. The fed argues that the economy should grow at a decent pace even if there are some potholes along the way.
The fed also has speculated that the rise in oil prices have somewhat stymied the progress of the economy. However, the fed did not signal concern that this year’s oil price surge will be catastrophic enough to send the economy into a recession as it did in the 1970s and 1980s.
Other news regarding commerce and home sales were optimistic. Big ticket sales items in commerce were up a couple points, as were home sales. Some 2.7 million jobs that were lost in the manufacturing sector since 2000 have shown signs of rebound. On a final note farmers in most parts of the country were having a good year.
http://biz.yahoo.com/ap/041027/economy_12.html
Suddenly, satellite radio matters
The two major satellite radio companies have announced deals that have sent their stocks through the roof. Sirius Radio Inc. Announced a few weeks ago that they had signed Howard Stern, the announcement sent Sirius' stock up 15%. XM just announced that they have radio rights to Major League Baseball, this announcement sent XM's stock prices up 10%. These recent actions have many analyst wondering can satellite radio really become a powerful force in the entertainment world, and which of the two strategic actions will have the biggest payoff.
Howard Stern has a cult following of listeners from coast to coast, from his late night TV show to his syndicated radio show that was broadcast in most major metropolitan areas. Satellite Radio provides a FCC-less format where Stern can be as vulgar as he wants to be. The price that Sirius paid to acquire Stern was far less than the price that XM paid to acquire rights to Major League Baseball, and therefore Sirius will have a much easier time recouping its investment in Stern as opposed to XM's investment in MLB.
I believe that Sirius' move in acquiring Stern will turn out to be the most profitable move of the two companies, because of the fact the Stern holds so much power in the radio world, and Sirius has gained absolute control over where Stern is broadcast. Therefore there is a greater incentive for potential customers to go to Sirius for Stern as opposed to XM for Major League Baseball. Major league baseball is broadcast on network TV and several cable stations, and by observation one might easily conclude that most people would rather watch a baseball game on cable.
Howard Stern has a cult following of listeners from coast to coast, from his late night TV show to his syndicated radio show that was broadcast in most major metropolitan areas. Satellite Radio provides a FCC-less format where Stern can be as vulgar as he wants to be. The price that Sirius paid to acquire Stern was far less than the price that XM paid to acquire rights to Major League Baseball, and therefore Sirius will have a much easier time recouping its investment in Stern as opposed to XM's investment in MLB.
I believe that Sirius' move in acquiring Stern will turn out to be the most profitable move of the two companies, because of the fact the Stern holds so much power in the radio world, and Sirius has gained absolute control over where Stern is broadcast. Therefore there is a greater incentive for potential customers to go to Sirius for Stern as opposed to XM for Major League Baseball. Major league baseball is broadcast on network TV and several cable stations, and by observation one might easily conclude that most people would rather watch a baseball game on cable.
10/27/2004
Complete Protection
Australian Trade has a problem. The Australian veiw of protection from plant/animal pests and other diseases has been characterized as "Complete protection whatever the cost." Australia has very strict quarantine policies. Importers have to wait years or even decades in some instances to get a complete scientific assessment of import risk.
Recently the Europeon Union has formally challenged the policy in the WTO. The Europeon Commission stated, "The EU does not dispute Australia's right to set an appropriate level of protection. The EU does however consider that Australia should not unfairly protect its own market and producers by imposing quarantine rules which block imports without scientific justification, often for many years."
Although the amount of trade lost due to the quarantine is hard to quantify. However, the commission showed the EU exports of fresh vegetables in Australia were 8,000 tons compared to the 35,000 tons exported to Canada (a comparable market).
I don't think that having any economic policy enforced "whatever the cost" is ever a good idea. There has to be some cut-off point where it is realized that the benefits of a policy are for overshadowed by the costs. I think this is the case with Australia's quarantine. Some sort of change needs to take place in order to relax the strict policy and increase imports.
Recently the Europeon Union has formally challenged the policy in the WTO. The Europeon Commission stated, "The EU does not dispute Australia's right to set an appropriate level of protection. The EU does however consider that Australia should not unfairly protect its own market and producers by imposing quarantine rules which block imports without scientific justification, often for many years."
Although the amount of trade lost due to the quarantine is hard to quantify. However, the commission showed the EU exports of fresh vegetables in Australia were 8,000 tons compared to the 35,000 tons exported to Canada (a comparable market).
I don't think that having any economic policy enforced "whatever the cost" is ever a good idea. There has to be some cut-off point where it is realized that the benefits of a policy are for overshadowed by the costs. I think this is the case with Australia's quarantine. Some sort of change needs to take place in order to relax the strict policy and increase imports.
U.S Confidence is dealt another blow
Boom! another hit. Continuing job worries have worsened consumer confidence in October. If it weren't for the optimistic news of oil today, it may have been business as usual on Wall Street and Corporate America, crapy. It seems like news just seems to get drearier by the month with no end in sight. Unless: oil prices get down to thirty bucks a gallon, Iraqi diplomacy succeeds to make Iraq a safe and terrorist free democratic state, and jobs become in rich supply the outlook for consumer confidence in America seems bleak. According to consumers' assessment of overall current conditions in the economy is short of okay. Despite the troubles of Iraq, and oil consumers are fearing the ability to get and sustain a well paying job. The lack of growth in the world economy has cut job growth which has in turn dealt a blow to the average consumer who can no longer help sustain a growing economy. The supply for jobs or investment just isn't there according to analysts.
www.msnbc.com/id/6335941
www.msnbc.com/id/6335941
Stocks surge as crude price drops
Since January of this year, the S&P has been consistently volitile with minimal growth. Many factors have contributed to the pessimism in the market. One of the greatest factors has been oil prices. Oil prices have struck the pockets of every oil consumer in the world. Today, the 27th of October news arose regarding a surplus in oil inventories. This news came shortly after Opec suggested America tap its strategic oil supply to lessen the burden of oil prices by bolstering supply. In a modest reaction to the news of the surplus indexes jumped upward with a higher then usual volume, and a much higher then usual gain.
With oil prices going up, complimentary goods such as automobiles should go down. With many american owning larger vehichles such as trucks, and suvs, one might think that resale values will start to decline as the price of owning one increases greatly. Since the begining of this year, oil prices have increased over sixty percent to over fifty two dollars a barrell. This is a tremendouse increase in price in a reletivly short period of time.
Now, oil is an less elastic good then say orange juice, and the price hasn't decreased oil demand substantially; however, if the rate of oil price hikes continue consumers are going to see lower resale value amongst their automobiles and wealth in general.
Price hiking that has been encountered this year with oil prices is suspiciouse. Prices are increasing at an alarming rate with no decrease in supply. The hike in price without a justified cut in supply is rather perplexing. Why would the government allow an increase in prices without the justified reduced supply?
Perhaps the vast oil fields world wide are being used up an alarming rate, causing government officials to raise rates to a point where demand falls. If this is the case, how much oil is really left? How long before the oil supply is exhausted? How much will my car or truck be worth in a month from now?
www.msnbc.msn.com/id/3683270/
With oil prices going up, complimentary goods such as automobiles should go down. With many american owning larger vehichles such as trucks, and suvs, one might think that resale values will start to decline as the price of owning one increases greatly. Since the begining of this year, oil prices have increased over sixty percent to over fifty two dollars a barrell. This is a tremendouse increase in price in a reletivly short period of time.
Now, oil is an less elastic good then say orange juice, and the price hasn't decreased oil demand substantially; however, if the rate of oil price hikes continue consumers are going to see lower resale value amongst their automobiles and wealth in general.
Price hiking that has been encountered this year with oil prices is suspiciouse. Prices are increasing at an alarming rate with no decrease in supply. The hike in price without a justified cut in supply is rather perplexing. Why would the government allow an increase in prices without the justified reduced supply?
Perhaps the vast oil fields world wide are being used up an alarming rate, causing government officials to raise rates to a point where demand falls. If this is the case, how much oil is really left? How long before the oil supply is exhausted? How much will my car or truck be worth in a month from now?
www.msnbc.msn.com/id/3683270/
Hummer Light
GM is introducing a new Hummer - the H3. The H3 is actually much smaller; its more like the size of a Jeep Liberty instead of the regular Hummer that we are used to. With this new Hummer, GM addresses the major complaint that they received with the H1 and H2 - cost. Not only is the H3 more affordable than the other Hummers, but it also has better gas mileage. It is said that the new Hummer can get up to 20 miles per gallon. The H3 also has a 5-cylinder engine with most of the off-road capabilities that the regular Hummer offers.
GM is trying to increase the demand curve of the Hummer. They are doing this by using price as a tool to increase demand. The H3 is more affordable both directly (cost of vehicle) and indirectly (cost of gas) and more people with different income levels can afford it; thus shifting demand.
GM is trying to increase the demand curve of the Hummer. They are doing this by using price as a tool to increase demand. The H3 is more affordable both directly (cost of vehicle) and indirectly (cost of gas) and more people with different income levels can afford it; thus shifting demand.
Privatize Social Security Before it’s to Late.
The legislative branch knows the Social Security (SS) system sucks. If it SS was a good thing would not our representatives be on it with us. The truth is SS system is no good and they know it so they legislate themselves a new retirement system. How fair is this, they not only get a better retirement, but it is funded by the US taxpayer. That right there makes me want to run for congress. The truth is the government knows the SS system is going to fail, they (meaning all politicians) are afraid of the AARP (American Association of Retired Persons), because they are the ones that vote and cause the biggest stink on capital hill. The truth is those of us under the age of 50 would be better off to vote for representatives that would do away with SS and privatize it. (I’m sorry but this may cause some of the stupid people to go hungry and cold, but remember we can’t always help the stupid people, those that won’t save for the future)
Mini-size Hummer
Hummer has now introduced a smaller size Hummer that is appealing to more consumers. Instead of driving a full size Hummer around, one can drive one similar in size to a Jeep Liberty. The smaller Hummer is powered by a 220 horsepower 5-cylinder engine. This will be the first Hummer available with a manual transmission. Gas is expected to be close to 20 miles per gallon which is much better than the past Hummers.
Are midsize SUV's what people want? Or does it just give more people a chance to say they drive a Hummer? The new Hummer is 17 inches shorter than the H2 and 6.5 inches narrower. It still will be able to drive through 16 inches of water at 20 miles per hour and can climb a 40 degree incline. It's a mini-Hummer. This will allow more people to have the car of their dreams for a cheaper price.
Are midsize SUV's what people want? Or does it just give more people a chance to say they drive a Hummer? The new Hummer is 17 inches shorter than the H2 and 6.5 inches narrower. It still will be able to drive through 16 inches of water at 20 miles per hour and can climb a 40 degree incline. It's a mini-Hummer. This will allow more people to have the car of their dreams for a cheaper price.
New Cars With New Presidency
What will happen to the auto industry after the elections? Cars and gasoline are becoming an extremely popular topic lately. With oil prices up and cars sucking the gas, the two candidates for president are giving their thoughts on the topic. Also, the CO2 from the cars have been getting many scientists worried about global warming because one-third of CO2 is distributed from the vehicles we drive.
President Bush wants to increase the tax credit from purchasing a hybrid, $1,500 up to $4,000. He and Congress have also approved $300 million for the research of hydrogen fell cell cars. With the prices increasing for oil, we need to do something with the cars that we drive. Kerry also wants to raise the mile per gallon on economy cars from 24 to 36 within the next 10 years. The problem is the auto industry and the workers don't like it. So, Kerry will probably raise the tax credit up to $5,000 for the purchase of hybrid cars.
I believe that something has to be done about the rising prices we are seeing from oil. I don't believe the government should get involved with the gas prices or hybrid cars. If the market wants hybrid cars then the people will get the cars.
President Bush wants to increase the tax credit from purchasing a hybrid, $1,500 up to $4,000. He and Congress have also approved $300 million for the research of hydrogen fell cell cars. With the prices increasing for oil, we need to do something with the cars that we drive. Kerry also wants to raise the mile per gallon on economy cars from 24 to 36 within the next 10 years. The problem is the auto industry and the workers don't like it. So, Kerry will probably raise the tax credit up to $5,000 for the purchase of hybrid cars.
I believe that something has to be done about the rising prices we are seeing from oil. I don't believe the government should get involved with the gas prices or hybrid cars. If the market wants hybrid cars then the people will get the cars.
New Cars With New Presidentcy
What will happen to the auto industry after the elections? Cars and gasoline are becoming an extremely popular topic lately. With oil prices up and cars sucking the gas, the two candidates for president are giving their thoughts on the topic. Also, the CO2 from the cars have been getting many scientists worried about global warming because one-third of CO2 is distributed from the vehicles we drive.
President Bush wants to increase the tax credit from purchasing a hybrid, $1,500 up to $4,000. He and Congress have also approved $300 million for the research of hydrogen fell cell cars. With the prices increasing for oil, we need to do something with the cars that we drive. Kerry also wants to raise the mile per gallon on economy cars from 24 to 36 within the next 10 years. The problem is the auto industry and the workers don't like it. So, Kerry will probably raise the tax credit up to $5,000 for the purchase of hybrid cars.
I believe that something has to be done about the rising prices we are seeing from oil. I don't believe the government should get involved with the gas prices or hybrid cars. If the market wants hybrid cars then the people will get the cars.
President Bush wants to increase the tax credit from purchasing a hybrid, $1,500 up to $4,000. He and Congress have also approved $300 million for the research of hydrogen fell cell cars. With the prices increasing for oil, we need to do something with the cars that we drive. Kerry also wants to raise the mile per gallon on economy cars from 24 to 36 within the next 10 years. The problem is the auto industry and the workers don't like it. So, Kerry will probably raise the tax credit up to $5,000 for the purchase of hybrid cars.
I believe that something has to be done about the rising prices we are seeing from oil. I don't believe the government should get involved with the gas prices or hybrid cars. If the market wants hybrid cars then the people will get the cars.
Diesels & Hybrids combine
Trying to make the most fuel-efficient vehicle is a challenge. Right now with the prices of gas, it is a good time to try and introduce a new product. Hybrid vehicles, which use an electric motor that is powered by batteries, are merging with diesel. These two complement each other in giving a car with power and acceleration. The diesel engine gives the "torque" necessary for pulling a heavy load, and hybrid motors draw electricity from the batteries providing sudden acceleration.
Diesel engines could be improved by up to 10 miles per gallon. Nothing has been set in stone for producing hybrid-diesel vehicles. School buses and large utility vehicles will be first to test out the hybrid-diesel technology.
Money is always an issue. By buying a hybrid-diesel vehicle one may save hundreds of dollars on gas. But, will these cars be cheaper? No. These hybrid-diesel cars will cost a couple thousand more than a regular diesel or gasoline engine car. Metropolitan areas can benefit because the air will be of better quality. Are people willing to spend thousands more on a car in order to help clean the air? Will these cars just be out on the market with few buyers? Are these cars a step towards a new car of the future?
Diesel engines could be improved by up to 10 miles per gallon. Nothing has been set in stone for producing hybrid-diesel vehicles. School buses and large utility vehicles will be first to test out the hybrid-diesel technology.
Money is always an issue. By buying a hybrid-diesel vehicle one may save hundreds of dollars on gas. But, will these cars be cheaper? No. These hybrid-diesel cars will cost a couple thousand more than a regular diesel or gasoline engine car. Metropolitan areas can benefit because the air will be of better quality. Are people willing to spend thousands more on a car in order to help clean the air? Will these cars just be out on the market with few buyers? Are these cars a step towards a new car of the future?
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