In politics there are often 2 types of government, one that tends to see government as an answer to every problem and one that see government as trying to avoid abuses while trying not to be involved in everything. We all know if there is no regulation, then the worse type of behavior comes, maybe not right away, but it will come. When there is regulation, at least when something goes wrong, there are remedies to be found.
In President’s Trump administration, a regulation which was passed, particularly passed by President Obama’s administration is bad and needs to be rollback and likely loosen even more. In the President’s eyes less government regulations allows for companies to spend less on regulations and more making money. The downside is if you examine a city like Los Angles a number of years ago, there were many smog days. This is partly dues to the car culture that exists and partly because of the location of LA in a bowl before the mountains, the wind needs to below the stuff away. Part of the solution, since it is hard to move a city is to have good car regulations. The automobiles which are made and given California is the largest market for vehicles have greater fuel efficiency and pollute less. That is a good thing for both the environment and citizens who use the vehicles.
In an article by Tamsin McMahon of Reuters, the Trump administration is rolling back vehicle administrations in terms of emission standards. This rollback in eyes of the President is suppose to translate to lower prices and stimulate a demand for more autos which would mean more jobs. Although in reality, more jobs in factories are done by robots for they do not strike and can work 24 hours a day, 6 days a week.
In California, the Governor said we are not lowering our standards and for those who love the constitution, if the constitution does not state the issue, then states have final say. Emission controls 200 plus years ago were not written in the constitution, which means emission standards are a state’s right.
Linking to dividend paying stocks, the auto companies would prefer national standards were the same as state standards because of the size of the market in the highest states, California and 14 other states have matched California standards. To produce to national standards means cutting off 40% of your sales, does any company want that? California standards will prevail. Unfortunately, these issues which polarize the country means people will ask why care what happens in Washington? That is not good.
There are more questions than answers, till the next time – to raising questions.