The Automobile and the Economy Essay

1021 Words 5 Pages
The Automobile and the Economy

The effects the automobile has had on the economy of the world are tremendous.
The major effects have came in many ways and include sales of the automobile, jobs
provided to sell and manufacture the automobile, gas/oil sales to run the automobile, and the start of auto racing sport. The revolution of the automobile was the start of the most popular and successful industry in the world.

The Effect of Gas/Oil

There is a great effect on the economy due to the sale of gas. The major effect of
how much gas is sold is how efficient the particular automobile uses gas and what
automobile the people choose to buy. Since the start of production of the automobile fuel efficiency has
…show more content…
The current Fuel Economy Standards are as follows...

..................Model Year..................Passengercars M.P.G.........
1978 18.0
1979 19.0
1980 20.0
1981 22.0
1982 24.0
1983 26.0
1984 27.0
1985 and future 27.5
(http//www.cnie.org/nle/air-10.html#summ 4)

The only problem with this chart is the lack of increase after 1985. This is due to
several reasons especially the 90’s new kick with sport utilities vehicles which usually
have a lower fuel efficiency. Americans are also behind the rest of the world in fuel
efficiency as the following chart shows new car fleet fuel economy comparing federal
standards, domestic fleet, import fleet, and the total fleet.
(http//www.cnie.org/nle/air-10.html#summ 5)

Some disagree that government regulations increase fuel efficiency. For example,
Michael Sykuta’s report concluded that federal fuel regulations do not have a significant effect on miles per gallons in automobiles.

Production…

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