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Obama continues to press for more fuel-efficient vehicles with new budget proposal

Despite the fact that consumers are not adopting electric vehicles and hybrids in force, the Obama administration continues to push ahead encouraging new vehicle research and broader availability for electric vehicles and hybrids. The federal government has handed out loans to help spur research and development to bring more fuel-efficient vehicles and other green technologies to market, and those loans have backfired on several occasions.

While Tesla Motors by all accounts seems to be thriving, producing upwards of 500 cars/week, some of its competitors haven’t been so lucky. Fisker was one of the recipients of a large government-backed loan and the company is expected to file bankruptcy soon.
 
President Obama has sent his 2014 budget proposal to Congress this week and while many programs and services are seeing their budgets cut, Obama is calling for a massive boost in money available for vehicle research. President Obama wants to increase the Energy Departments vehicle research budget by 75% to $575 million.


Tesla Model S assembly line [Image Source: Tesla Motors via Flickr]

Obama also wants to create a $2 billion trust fund to research ways to wean the country off foreign oil over the next 10 years.

"We'll continue our march toward energy independence," said Obama.

Obama is also calling for provisions in his budget to help jumpstart sagging electric vehicle sales. The president wants to increase the tax credit for electric vehicle purchases from $7,500 today to $10,000. With the current tax credit, the electric vehicle buyer takes the tax incentive as a discount on their yearly taxes. Obama's new plan would allow consumers to take the discount at the point of sale as a rebate.

The budget also wants to accelerate research and development for emerging battery technologies and new manufacturing processes to allow the automotive industry to produce cheaper electric vehicles with better range and faster charging capability.

Source: Detroit News



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RE: strange
By Mint on 4/12/2013 10:30:11 PM , Rating: 2
quote:
The people that got those loans couldn't afford to make the payments, defaulted on those loans, filed for bankruptcy or just walked away.
Doesn't matter. A bank is supposed to secure all its loans with adequate backing. For a house, that means a down payment to cover possible depreciation. When someone defaults on their mortgage, they only get to keep what's left after the auction pays the bank enough for the principle plus default fees. Losses would then effectively come out of the down payment.

Instead, they greedily pursued high interest, low (even zero) down payment loans, i.e. the sub-prime market. That's the free market at work, where the banks used past data to model risk and depreciation, and competed with each other for this seemingly profitable market.
quote:
When Reagan inherited Carter's mess, his plans caused triple the growth than what his happening under Obama.
Reagan's policies exploded private debt and used it as a crutch for growth. When you give tax cuts to the rich, they save a lot more, and banks then lend a lot more. It worked for decades, until the Bush tax cuts had private debt growing at the rate of over 25% of GDP per year. Private debt is $40T now, absolutely dwarfing gov't debt.

That method can't work now, as the crutch is broken. The rich are saving more than the banks can safely lend out, despite zero interest discouraging them from doing so. We ran head first into the limits of what we can get from private debt creation. That well is dry.

NOTHING will cure the economy without more demand. Not tax cuts, not debt repayment, not regulation removal, nothing. People with high income need to spend more voluntarily (fat chance of that happening) or be taxed so the spenders (either the gov't or the middle/lower classes) will do it for them. Without more demand, businesses have no reason for net hiring, investors have few new production needs to invest in, and unemployment only gets worse.


RE: strange
By Reclaimer77 on 4/13/2013 6:22:49 PM , Rating: 1
Man every time you post, on any issue, it's just such bullshit. But this really takes the cake.

quote:
It worked for decades, until the Bush tax cuts had private debt growing at the rate of over 25% of GDP per year


So cutting taxes, letting people keep MORE of their income, increased private debt. Riiiight, makes complete sense!

quote:
Doesn't matter. A bank is supposed to secure all its loans with adequate backing.


And they used to. Except some Democrats decided that was "unfair" to minorities. It excluded them from home-ownership. Hence the sub-prime mortgage was created and the banks were bullied into submission to offer them.

quote:
Reagan's policies exploded private debt and used it as a crutch for growth.


Bull. Prove it. I want links from non-Liberal sources that make sense out of this assertion. Because it's not backed by any rational unbiased analysis. Debt was already exploding from Carters insane inflation and unemployment, idiot!

quote:
NOTHING will cure the economy without more demand. Not tax cuts, not debt repayment, not regulation removal, nothing. People with high income need to spend more voluntarily (fat chance of that happening) or be taxed so the spenders (either the gov't or the middle/lower classes) will do it for them. Without more demand, businesses have no reason for net hiring, investors have few new production needs to invest in, and unemployment only gets worse.


Correct.

Where you fail is to recognize WHY "demand" is low and has remained so under Obama.

1. Massive banking regulations leading to the banks basically afraid to take any risks, especially with loans.

2. A President who's lost more jobs than he's created, threatens to raise taxes, and is spending us into bankruptcy.

3. Obamacare and other regulations causing MASSIVE economic uncertainty. This has caused a hiring slump and other issues. Nobody knows which way the country will turn or what is coming next or what the thousands of pages of regulations from Obamacare actually means to their bottom line.

You're correct that the "rich" and corporations are holding onto their money, taking less risks, and waiting this mess out. But you fail to realize the policies you're supporting are CAUSING this to happen!

quote:
People with high income need to spend more voluntarily (fat chance of that happening)


Funny but they seem to spend plenty, hire more, and take more risks when the times are good and a Keynesian isn't running wild in the White House.

Instead of recognizing the why, you instead choose to scorn the "rich" for not going along with Obama's horrible economic vision to their own detriment. Would you!??


"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson














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