A Good Day for Consumers and the Environment

Elections do have consequences. Today came an announcement from President Obama that serious mileage improvements and pollution requirements for cars and trucks sold in the U.S. will take effect in 2016. In another development, the Senate voted 90-5 to rein in some of the worst abuses of the credit card industry. The changes illustrate both the positive effects of the election of a new administration and congress, but also the limitations inherent in the system of how things work in Washington.

The auto changes come from an agreement apparently hammered out between the White House, congress, U.S. automakers, the UAW and the state of California. Members of all these groups stood behind the President as he made the announcement on the White House lawn. By 2016 fleets will have to average 35.5 miles per gallon and emissions will have to be cut by about 30%, including carbon dioxide. These are consequential requirements that will help on global warming and put a dent in our reliance on foreign oil.

On virtual life support from the federal government and badly wounded by the recession, Detroit dropped its opposition and finally went along. They had been fighting California's attempt to enact strict standards in court since 2002 but finally gave up. Better to strike a deal with the Democrats in power than stick with the Republicans in opposition, they must have figured. The way Washington works, they will now have influence on regulation over themselves, an important byproduct for them for the future.

The credit card companies will be restricted on some of their higher rates, will have to spell out their policies clearly in plain English and will have to give 45-days notice for most rate increases, among other things. The Senate bill is similar to a House bill passed earlier by a vote of 357-70. One downside of the bill is an amendment by Republican Sen. Tom Coburn that would "bar the Interior Department from prohibiting individuals from legally carrying firearms inside national parks and wildlife refuges." Great. Just what we need, more lunatics with guns in public places. Why not sticks of dynamite too, while we're at it?

The other problematic feature is the rules won't go into effect for nine months. We can expect the credit card lenders, who assailed the bill for as they termed it, restricting their ability to extend badly-needed credit, to use that time to gouge people as much as they can and put new rules in place to rip people off in whatever ways their lawyers find the new regulations haven't closed to them. These are the kinds of struggles that never end.

So in these two announcements today we see both the efficacy of change through the election process but also the persistence of some of the same old habits and processes that always mitigate the full scope of what can be accomplished. Still, by D.C standards it was a very good day at the office for Barack Obama, Democrats, consumers and the environment.