President Barack Obama and the manufacturers of major automobiles in the United States have agreed to increase fuel efficiency standards to 54.5 MPG by the year 2025. This is good for business, good for consumers, and good for the overall economy.
Start with consumers. People are paying large amounts of money for gas. It is sucking family budgets and causing them to have less disposable income. If people can buy an affordable vehicle that gets great MPG, then they will not be using as much of their income on gas and will be able to use it on other things.
This is where it helps the business community. When people have more disposable income, they have more money to spend. And with more money to spend, they will do things like go shopping for electronics or clothes, and eat out more often. This will in turn stimulate the economy and increase the profitability of business, which will encourage more economic growth. Businesses will also not have as many expenses with regards to transporting items from one location to another.
With both of these factors working together, the overall economy will be strengthened. Families spending more and businesses collecting more. The economy will grow, and everyone's standard of living will be increased. For conservatives who are in bed with the big oil companies, they should consider the long-term effects of not supporting such legislation.
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