Stale Cafe, Fidelity Bond Foolishness, Oil Prices and 'Folk Economics'

4 Pages Posted: 16 Nov 2006

See all articles by Paul Godek

Paul Godek

Competition Policy Associates

James Clark

Independent

Paul H. Rubin

1350 Main St UNIT 1703

Abstract

Stale CAFE By Paul Godek, Competition Policy Associates Not only does CAFE set minimum average fleet gas mileage standards for firms selling passenger vehicles in the United States, the standards apply separately to two sources of vehicles - domestically-produced and imported. The reason for that distinction lies in the political influence of organized labor. Imports of Japanese cars surged in the 1970s, and the low profits on domestic small cars were leading the Big Three automakers to displace domestic small cars with captive imports.

Fidelity Bond Foolishness By James P. Clark Because fidelity bonds do not appear to be good investments for the banking industry as a whole, the banking agencies should not require financial institutions to buy them. Whether to buy fidelity bonds should be left up to bank management. Buying a fidelity bond may be a prudent investment in some cases, such as when an institution is thinly capitalized. But in light of their high cost, banks that buy fidelity coverage would probably be wise to opt for a high deductible.

Oil Prices and 'Folk Economics' By Paul H. Rubin, Emory University If we are to make headway in explaining the benefits of free markets to those untutored in economics, we cannot begin with supply and demand. We must go beyond conventional economics and consider folk economics - human intuitions about economics that are rooted in our social evolution. We must explain that, contrary to those intuitions, wealth creation and free markets are beneficial to society because of the benefits of the wealth creation and efficient allocation that free markets encourage.

Keywords: Paul Godek, James P. Clark, Paul H. Rubin, CAFE, gas mileage, fuel, energy, automobiles, oil, gasoline, ethanol, fuel economy, vehicles, vehicle design, fidelity bond, FDIC, oil prices, folk economics, stale CAFE, Fidelity Bond Foolishness, Oil Prices and 'Folk Economics', gasoline prices, FTC

JEL Classification: D12, D43, E30, E39, E42, E49, G21, E53, G28, F13

Suggested Citation

Godek, Paul and Clark, James and Rubin, Paul H., Stale Cafe, Fidelity Bond Foolishness, Oil Prices and 'Folk Economics'. Regulation, Vol. 29, No. 2, pp. 6-9, Summer 2006, Available at SSRN: https://ssrn.com/abstract=917171

Paul Godek

Competition Policy Associates

One Front Street, 15th Floor
San Francisco, CA 94111
United States

Paul H. Rubin

1350 Main St UNIT 1703 ( email )

1350 Main Steet #1703
Sarasota, FL 34236
United States
14049310493 (Phone)

HOME PAGE: http://www.economics.emory.edu/Rubi.htm

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