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How to Create More Traffic, Costs and a Slower Economy

September 9, 2024 by Barry J. Klazura No Comments

Does it ever appear to you that most governments and especially the Federal government live in some sort of alternative universe? Recently a local government decided to shut down local oil rigs in the name of saving the planet. The problem was that those oil rigs contributed about eighty-three million dollars to the government in the form of taxes. As the day of the shut down approached, (the decision had been made two years ago), someone in government asked how were those funds going to be replaced? Perhaps a reduction in the number of city workers? No, not that. Eliminating non-essential government programs? No, not that. Then someone had a brilliant idea: increase the sales tax even though the current city sales tax is among the highest in the nation. Yes! Great idea!

On the national level, the lack of being in touch with reality is even greater. For example, the EPA last Good Friday decided to roll out it is Biden inspired electric truck mandate. From 2027-2032, heavy-duty trucks will be responsible for an ever-increasing percentage of trucks on the road. By 2032 the percentage is targeted to be 25%.

There are a number of questions and concerns that came to light immediately, but which somehow were not anticipated or answered by either the EPA of the White House, for example:

  • The batteries of semis are larger and heavier than those in fossil fuel vehicles, so their pay loads will be smaller.
    • This means that there will be more semis on the road which will lead to more traffic congestion which will lead to:
      • More pollution as their tires creates more soot than conventional tires.
      • Higher delivery costs
      • Greater damage to the highways as these semis are heavier which may be beyond the original engineering specifications.
  • The cost.
    • While there will be more semis on the road, where will the capital come from in order to pay for the new semis:
      • Electric semis cost on average, about twice as much as traditional semis.
        • This will lead to higher costs of transportation which will lead to higher costs for the consumer and greater inflation.
        • At the current time, there are no U.S. electric semis in production so will the new semis be manufactured by our national competitors such as China?
          • Is this mandate in reality a job core program for China?
        • What will be done with the hundreds of thousands of suddenly outlawed semis?
  • Where will the energy come from?
    • By 2030, electric trucks are anticipated to use about 11% of California’s electricity. As the trucks have to run mostly during daylight hours in order to cover more ground, they will have to recharge at night when rates are higher, which will lead to greater shipping costs.
    • Between now and 2032, about 15,000 chargers will have to be built and installed each and every month. The government has installed less than a dozen chargers in the past two years.
    • Infrastructure will have to be upgraded, including transformers, wiring, etc. The estimated cost is $370 billion with another $620 billion being spent by the truckers themselves at their facilities. Another increase in pricing.

The list could easily go on and on and I sincerely doubt that anyone at the EPA, the White House or Congress is looking at how to solve those issues above in a time of major economic and international pressures. Perhaps the powers that have a few ounces of magic dust they intend to use to help implement their silly, unrealistic, childish mandate. And this is just one of many brilliant ideas we will continue to see coming out of D.C. in the future, no matter which party is in power. After all, the government must appear to be doing something or else we would just end up asking why we need so many bureaucrats in our lives.

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Barry J. Klazura

Barry Klazura sipping grappa

With a Masters Degree in Guerrilla Warfare and Totalitarianism, Mr. Klazura was well prepped for a career in Sales and General Management, consulting on corporate startups and turnarounds as well as lecturing on history and politics.  For the past twenty years he has focused on being a financial advisor and consulting.

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