May 19, 2009 10:14AM 

# Simultaneously Destroying and Subsidizing the Auto Industry 

By [Daniel J. Mitchell](https://www.cato.org/people/daniel-mitchell) 

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The Obama Administration has [announced](http://news.yahoo.com/s/ap/20090519/ap_on_go_pr_wh/us_obama_autos) new fuel-economy regulations and emissions rules that will boost the cost of new car by at least $1300. This is probably another nail in the coffin of the American automobile industry, but Jerry Taylor is the guy to provide thoughtful analysis. When I read about the new White House scheme, the first thing that came to my mind was this extremely clever video (yes, I am envious that my videos are not this creative) about the type of car we will all be driving if politicians continue to run amok:

##### Related Tags 

[Energy and Environment](https://www.cato.org/research/energy-environment) 

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