Trucking Regulations, Potatoes, and Alabama Insurance

Today in the News

Trucking Regulations

The Obama administration yesterday proposed new fuel efficiency standards for trucks.

Director of the Center for Energy and the Environment Myron Ebell argues that the new standards will deal a heavy blow to the economy.

“It is already in the interests of truck manufacturers and the freight industry to make trucks as fuel efficient as possible. The only way to increase fuel efficiency as quickly as EPA’s proposal requires will be to move less freight. That means that commercial activity and economic growth will take a huge hit.”

 

Potatoes

The government is considering limiting or banning potatoes from public school lunches.

Fellow in Regulatory Studies Ryan Young points out how ridiculous these anti-potato regulations are.

“Critics of the nanny state’s slow but steady mission creep often ask, ‘What’s next, a law saying eat your vegetables?’ Well, apparently it is next. Freedom advocates need to find a new reductio ad absurdum. In fact, the USDA already has a temporary regulation in place disallowing food stamps to be used to buy potatoes. The rule may be made permanent next year. Poverty has more important indignities than losing some choice of what you buy at the grocery store. But what a way to treat adults.”

 

Alabama Insurance

The head of the state-run property insurer in Alabama has announced he will no longer issue policies for homes built over or standing in water.

Policy Analyst Michelle Minton says that other government-run insurance programs could learn from Alabama.

“One of the results of National Flood Insurance Program’s covering high-risk properties and undercharging premiums is that its debt has ballooned and it requested a bailout to the tune of about $20 billion. The problem occurs when the government, either state or federal, starts underwriting property insurance at reduced rates. This encourages people to continue risky behavior, to forgo mitigation efforts (like cutting down trees, raising property, hardening roof structures), to continue building in risky areas, and it pushes out private insurers who can not compete with taxpayer-funded insurance facilities.”