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Auto industry regulations to lead to higher prices?

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    Washington's push to boost car efficiency could cost consumers

  • Duration 3:16
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New questions this morning on government regulations against the auto industry.

With Washington's push to boost auto efficiency car manufactures are passing that along to the consumer.

And -- has to right Murdoch thinking about how this is just.

Just -- economist in Fox News contributor going to write good to have you here.

-- -- I'm doing just fine as it -- me a little bit about how the CEO what these regulations are and why you think they're gonna lead to higher prices for cars.

Or less sure there's a law -- corporate average fuel economy.

Or cafe standards that there is a -- -- -- started back in 1975.

During the big -- 1970s energy crisis and -- with the supposed to do is increase slowly but surely.

The fuel efficiency of cars and there's a recent study done by the national auto dealers association that indicates that between now and -- 25 and standards and keep going up.

The average car of the car that they studied cheapest car the study -- Chevy ad deal.

Is gonna go from 1217151700.

In this 3000 dollar increase in price the car's gonna -- about seven million.

Two drivers of low income drivers to be unable to qualify for carloads.

One of the people course and see that the a sticker prices go up so you may have an increase in fuel efficiency but -- see prices going up at a time when the economy is weak and people are counting every penny.

-- if you guys have really fascinating sort of cost benefit and now assess when you look at this and let's put that back up again -- the ship via mail.

That -- that drove just talking about and it says it's in 2010 the car -- cost 121700.

Dollars.

They anticipate that in 20/20 five according to these standards and they dip the rising cost that companies would have to employ to build the cars.

Under the stairs it would go up to 151700.

And that -- hit out of the range where you would be able to qualify up front -- on is that right in certain.

Yeah buts about seven and these are costs in 2010 dollars that's keeping keeping the dollars even.

They have about seven million people because of the higher prices just won't be able qualify for carlin's.

Of course of their -- drive -- -- cars whatever benefit you would get environmentally won't appear they don't get and a new cars.

You also make an argument that it's more dangerous on a -- That's very much more frightening in the increase in price and and the affordability problem is that cafe standards kill.

And auto companies in order to comply with these regulations of -- course -- they made them lighter.

-- used a lighter materials and that's all well and good in terms of increasing MPG until you happening into a car crash we drive and a tree or something like this.

And the numbers of people who have been injured in and killed as a consequence are just enormous figures.

German Benjamin JR -- wrote a terrific piece couple pieces enough.

A publication called American thinker he looked at studies and Brookings Institution Harvard University National Highway Traffic Safety Administration.

And finds depending which city you check out between 1975 and now about 42002 about a 125000 people have been killed.

Dead as a consequence of being car crashes they otherwise would -- survived and not driving in these.

Non crash were the vehicles and injuries or something like 350000 plus and some of them people up permanently crippled for life.

So these are not -- expensive standards these -- deadly standards deadly regulations created by congress forced by the EPA.

And the department transportation and it's really a policy of mayhem coming right out of Washington DC.

Very interesting perspective and food for thought for sure on this issue drug joy thank you very much -- let us thank you much rapidly and a -- speak behind American.

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