Friday, May 02, 2008

A Rational Response

Michael Bloomberg, NYC Mayor, on the McCain-Clinton gas tax cut proposal:


It’s about the dumbest thing I’ve heard in an awful long time from an economic point of view.

While the candidates debate the ridiculous gas tax cut proposal, Americans in large numbers are voting with their wallets, and the winners are smaller cars and better gas mileage. Rather than save 5% through lower taxes, Americans are hoping to cut their fuel costs by 30 - 40% through better fuel efficiency.

Today's NY Times reports that 1 in 5 cars sold in the most recent auto sales reporting was a compact car; just a few years ago the ratio was 1 in 8. The article quotes George Pipas, chief sales analyst for Ford, saying "It's easily the most dramatic segment shift I have witnessed in the market in my 31 years here.

Two other quotes from that NY Times article:


"The era of the truck-based large S.U.V.’s is over”

-- Michael Jackson, chief executive of AutoNation

And, my favorite:

“I had to smile the other day when I filled my tank for $18 and the guy next to me had a Ford Explorer and the pump was clicking past $80”

-- Dave Strom, retired manager of a Chevrolet dealership


Cross-posted at The Blue Voice

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