creators.com opinion web
Liberal Opinion Conservative Opinion
Steve Chapman
Steve Chapman
27 May 2012
Are We Headed for a Fight with China?

SHANGHAI — The Soviet Union is gone, al-Qaida is decimated, and Iran may never acquire nuclear weapons. … Read More.

24 May 2012
From Mao to 'Money Worship'

CHANGSHA, China — On an island in the Xiang River stands a massive bust of the late Chinese ruler Mao … Read More.

20 May 2012
China and the Lure of the Status Quo

BEIJING — A rising Asian power with an unstoppable export machine, rapidly growing wealth and a sense … Read More.

Congress Accelerates Out of Control

Share Comment

When the news broke about alleged safety defects in Toyota vehicles, official Washington was appalled. Transportation Secretary Ray LaHood accused the company of being "safety deaf" and said "they have a very bad business model."

Then there was the reaction from customers, the very people whose lives and safety are at stake every time they get in a car. In the first four months of this year, Toyota's U.S. sales did not fall, as you might expect. They rose by 12 percent.

Sticky gas pedals, sudden acceleration, alleged violations of the law, federal fines, multiple recalls — none of them sent Americans fleeing in panic.

It's true that the Japanese automaker has had to offer more sales incentives than it used to — $2,498 per vehicle in April. But that only shows everything is negotiable to car buyers. "This vehicle may speed dangerously out of control and kill me without warning?" they say. "OK, but I'm not paying sticker."

This surprising development might cause elected officials to reconsider the wisdom of getting in between automakers and consumers when it comes to safety standards. But no such luck.

Rep. Henry Waxman, D-Calif., who chairs the Committee on Energy and Commerce, and Rep. Bobby Rush, D-Ill., have introduced a bill to impose new federal mandates on top of the existing ones. Waxman attests that it "may be the most important vehicle safety bill in a generation."

It would demand brakes that can stop a car even if the accelerator is stuck, require a minimum stopping distance and create rules for vehicle electronics. Automakers would have to install event data recorders, like the black boxes on airlines, to provide information about accidents. Congress may also impose a vehicle fee to pay for federal regulatory activities.

Toyota, like any human institution, has made its share of mistakes, some of them possibly inexcusable. But if it were truly deaf to safety, its vehicles would not rank better than average in driver death rates. It's hard to see how a bad business model could have made Toyota the largest producer of cars — or, as a 2008 survey found, the most respected company on the planet.

You would never know from Waxman and Rush that the government is not the main source of auto safety improvements. Profit-making corporations actually have a strong business interest in keeping their customers alive.

They can also make money by offering products that reduce rather than maximize the buyer's chances of dying in a fiery crash. Just as there are markets for auto style, power, versatility, luxury and sportiness, there is a market for safety.

A lot of advances were not forced on a callous industry by Washington, as Dave McCurdy, president of the Alliance of Automobile Manufacturers told Waxman's committee.

He reminded members that "automakers have developed many of today's significant safety innovations without a government mandate, including anti-lock brakes, electronic stability control (ESC), adaptive headlights, side airbags and curtains, front passenger safety belt reminder systems and advanced collision avoidance features like lane departure warning, blind spot monitors and adaptive cruise control."

Those improvements are among the reasons that last year, the number of traffic deaths was the lowest since 1954 — even though there are twice as many drivers, traveling four times as many miles, as there were back then.

If federal regulators have insufficient tools to prevent safety defects, as the legislation presumes, this dramatic improvement must be due to something other than government vigilance. That, in turn, suggests that when it comes to reducing highway bloodshed, we are better off relying on consumer demand and competition among carmakers. It calls for humility on the part of federal officials.

But humility is not the prevailing mood in Washington. Between Toyota's missteps and federal measures to help the industry, politicians are feeling even bossier than usual.

What they are inclined to forget is that mandatory vehicle improvements don't come free. Those black boxes, for example, could cost hundreds or thousands of dollars apiece.

New cars have more safety features than older ones, so someone who trades in an old vehicle is likely to increase her life expectancy. Regulations that raise the price of a new car shut some buyers out of the market. So tougher federal rules may have the perverse effect of leading to more traffic fatalities.

If so, don't expect Congress to hold a hearing.

Steve Chapman blogs daily at newsblogs.chicagotribune.com/steve_chapman. To find out more about Steve Chapman, and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

COPYRIGHT 2010 CREATORS.COM


Comments

2 Comments | Post Comment
EXCELLENT article.
Comment: #1
Posted by: David Henricks
Fri May 14, 2010 2:06 PM
Sorry, Steve, this article really irritated me.Yes, manufacturers can compete on safety features, but when those features fail to work as advertised, and human error and perhaps a desire for short term profits tell us they will fail occasionally, the manufacturer is likely to be among the very first, if not the only, to detect the pattern of failure. What is their market incentive to come forward? Their market reputation is at stake, but the pattern of defects must be detected, and if they believe they can run that gauntlet, they have no incentive to disclose. Indeed, ask Alan Greenspan whether he now believes whether reputational self-interest is sufficient to police a market. Now there's a government employee who has had to acquire humility the hard way! Toyota's ability to increase sales speaks more to the ability of squeezed middle class families to put it all together with an eye for every penny going out the door and a firm prayer that "it won't happen to me", a prayer backed up by the presence of those villainous trial lawyers If you don't want these laws or the regulatory bodies to enforce them, what you are really seeking is a reduction in taxes--another way to starve the beast--just don't create him. Fair enough but don't at the same time suggest that business will do it all on their own. That is speculative, at best. We sometimes need these mandates and enforcement mechanisms--safety mandates have made our highways remarkably safer, and it is revisionist history at its worst to suggest that business would have done it on its own. It took many unnecessary deaths, a long path to legislation and finally government's requirements to convince business that they could distinguish themselves on safety. Please reread Unsafe At Any Speed. You are old enough to remember that car executives fought seat belts, which no one today would believe. Exploding Ford Pintos? No mention of that here. No one in government has ever claimed that they did it by themselves; why can't business HUMBLY acknowledge that markets do not always work efficiently and HUMBLY understand that government has its role to play. Your demand curve argument is in fact your best and strikes at the balance to be played between the regulators and manufacturers. The government may in fact act with the most humility if it can help in any R &D efforts that can bring down the cost of implementing these innovations. The demand curves are probably measurable as well, so at least those who are shut out of the market can be measured and balanced by those we know have died in braking accidents, an example of the kind of implicit pricing of human life made every day by business and government. Can anyone sit here and say after the last two years that the market, whether financial or auto or any other industry, is here to protect us? Or that it can even protect itself? What is cut significantly when the limited government ideas and chaps take over is enforcement, and at the moment, we seem to need more of it, at least until market norms return to those that favor long term interests. The Regan era should reach its death, along with the view of government as our enemy rather than as the embodiment of our best selves, the better angels of our nature, or at least the disciplinarian for those who have no better selves. Soon you will be able to see the natural consequences of doctrinaire limited government wash ashore on the Gulf coast, all for the lack of an easily installed shutoff valve, some good batteries and a modicum of professional enforcement of necessary environmental laws. Some thoughtful balancing of both government regulation and market operation, rather than this endless whine of either/or, needs to be made. Americans are pragmatic, good hearted but also tough. Let's go with that.
Comment: #2
Posted by: Peg Determan
Sat May 15, 2010 2:12 PM
Already have an account? Log in.
New Account  
Your Name:
Your E-mail:
Your Password:
Confirm Your Password:

Please allow a few minutes for your comment to be posted.

Enter the numbers to the right:  
Creators.com comments policy
More
Steve Chapman
May. `12
Su Mo Tu We Th Fr Sa
29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2
About the author About the author
Write the author Write the author
Printer friendly format Printer friendly format
Email to friend Email to friend
View by Month
Author’s Podcast
Roland Martin
Roland S. MartinUpdated 20 Jun 2012
Marc Dion
Marc DionUpdated 28 May 2012
Steve Chapman
Steve ChapmanUpdated 27 May 2012

6 Aug 2009 Vetoing Vicious Vodka

23 Jun 2011 Another Texas Republican for President?

15 Aug 2010 Giving Birth to Immigration Fears