

The Wall Street Journal puts forth the case that the government's $5 billion lifeline to GMAC has given GMAC a competitive advantage compared to its rivals. After the taxpayer cash was received, GMAC dropped the required credit score to get a loan and began offering 0% financing on several models, and rates from about 1% to 6% on a host of others. While doing so, it admitted that "without this [loan] . . . we would not be able to do this today." The Journal cries foul, saying that because GMAC is essentially doing this with -- or at least, because of -- government money, "the feds have now put the muscle of the state behind one company's products." The Journal also considers that the government might do what it can to make sure the horses it bet on win the race, saying "the Washington temptation will be to take other steps to help the two companies gain market share at the expense of their private competitors."
A man named Lonnie Ray Davis was pulled over by Michigan police. When they searched his car, they found an open alcohol container, crack, a wad of cash, a stun gun, and a .38 caliber handgun. He was, of course, arrested. But the reason they pulled him over has become a constitutional law issue: Davis had a Tweety Bird ornament dangling from his rear view mirror, and Michigan law forbids dangling things that "obstruct the vision of the driver of the vehicle." Davis' argument was that the Tweety Bird didn't obstruct his vision, so the cops had no right to pull him over, and therefore the items they found should be suppressed. The 6th Court of Appeals initially struck down the Michigan law since it does not define "to what degree the driver's vision must be obstructed or for how long." Noting that a great many cars have objects dangling from their mirrors, and so may be in unwitting violation of the law, "the statute itself provides no guidance either to motorists or police as to which ones" violate the law, and so must be scrapped. The court didn't suppress the evidence, and shortly after its ruling it rescinded its decision striking down the ban. The reason is thought to be that the court was required to let Michigan plead its case for the ban before the court struck it down. The court has not given a reason for its reversed decision. As far as the now-reinstated fuzzy dice ban, for now it remains a reason for the police to pull you over if and when they decide.

A gas tax is about more than putting liquid into your tank and subtracting a higher amount from your bank account. A gas tax is -- just like CAFE and hybrids and $25 billion set aside to finance fuel efficient technologies -- about reworking and redefining our entire system of private transportation. And since that system is most certainly going to redefined, it is no surprise that the National Commission on Surface Transportation Infrastructure Financing has recommended a jump in the federal fuel tax. Congress created the commission to examine the federal taxes on fuel -- currently 18.4 cents for gas and 24 cents for diesel -- and the commission came back with the same results as everyone else: people are driving less, and driving more fuel efficient cars, and that has killed revenue for transportation infrastructure. One member of the commission said, "I'm not excited about a gas tax increase, but the reality is our current gas tax doesn't pay for upkeep of the system we have now. We can either let the roads go to hell or we can pay more." If the roads go to hell, though, guess what? We're going to pay more, but that money will go to service departments and auto parts stores. The proposed solution is to make the gasoline fuel tax 24.4 cents, and the diesel tax between 36 and 39 cents. That would begin to make up for the $105 billion difference between actual revenues and the money needed to upkeep our roads and highways. It is conceivable that a higher gas tax could also encourage people to buy those high-mileage vehicles the government keeps commanding Detroit to make. But before that happens, it will probably just make a lot of people anguished and angry.



