February 25, 2005
Rational Individualism and Hybrids
As near as I can tell, the theory behind libertarianism and free-market capitalism is that people, left to their own devices, will usually make the right choices. Those right choices may not be the desired behavior of the nanny state, but will be rationally best for the individual. Democrats, on the other hand, seem to believe that individuals are one government decree away from throwing their lives down the tubes, and thus government needs to step in and manage and watch over to make sure we don’t hurt ourselves.
This, of course, is true for a number of different issues. The left doesn’t think you can be trusted with your own retirement, so they’ll handle it for you. Likewise, you can’t be trusted with healthcare, so the government will handle that. You can’t argue with your employer for benefits or working conditions, so they’ll mandate those.
And you can’t seem to demand of automakers that they improve gasoline efficiency, therefore they’ll do it for you.
Rationally, there are two parts of the equation. First, there are the economics of gasoline prices and mileage. Second, there is concern for the environment. The market works very well to keep both of these things in balance. If you look at the growing market for hybrid vehicles, it is obvious that increased gas efficiency is a buying point for many people, likely beyond that of just the “greens”.
Using myself as an example, I ask myself whether it is worth it to get a hybrid vehicle. I currently drive the ubiquitous light truck, a Ford Ranger. Based on my lifestyle, I’d like to keep the versatility of a light truck, so my options are currently non-existent for hybrids. That will change, of course. So, when I look at a new vehicle, I have two questions to ask myself. First, how much more does this hybrid cost? Second, at my current rate of driving, how long would it take to recoup that expense?
Currently I drive about 10k miles/year. A low amount by most standards. My truck now gets between 16 and 17 mpg. Let’s say, for the sake of argument, that a hybrid light truck would get 32 mpg, exactly double. We’ll hold gas prices at a constant rate of $2/gallon. With those numbers, I would spend $1250/year on gas for my truck, or only $625/year for the hybrid.
Hybrids currently cost, from my limited research, about $3000 extra. At a savings of $625/year, it would take around 4 years for that price adder to be recouped. Since I plan to keep cars for a longer period of time than this, it is worth it, if I am buying a new car, to buy a hybrid. I have consciously left out the environmental portion of the decision, since I don’t necessarily believe that global warming is the problem it is purported to be. I’d be willing to pay a slight premium for a “green” car, but it’s not a primary factor in my decision making.
Therefore, it is in my rational self-interest to make my next purchase a hybrid. And since it will likely be 4 or 5 years before I purchase another car, I may even be able to follow my standing rule, which is to never buy cars brand-new, I may even be able to pick up a used hybrid truck for a song.
Does the government get to claim credit for my rational decision? Not if I have anything to say about it, but they’ll probably try.
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i don’t know if you’ve noticed this or not, but most people are imbeciles. this alone is the strongest proof that angels must be watching over them [& us] and by association of theory, that there is life after death.
Politically; Most of the damp masses need someone to look after them, and whether you’re an Libertarian or Whig– you’re going to have to replace the government that you plan to do away with, with another government that’s going to have all the same responsibilites & corrupt beaurocrats as the one we’ve got now. Should the government take care of us as if we were babies…?
Yes! And if you want to be an unruly baby, then so be it. Don’t keep the rest of us from suckling on those red, wet teats though, because we need them!
Hybrids are far from the answer to our problems. They are still too expensive without matching gains in efficiency. They are also expensive to maintain. It’s not that they’re a bad idea, but it’s not an area where I’d want to be an “early adopter.” Let the market show you that hybrids are ready for prime time before jumping in. If only governments (especially California) would have any understanding of the power of the market….
Some very interesting stuff can be found by going to http://www.heartland.org and searching for “hybrid cars”.
It’s (hopefully) going to be a couple years until I get rid of my truck. I’m still at 80k, and I think that sucker will run up to 140 or 150k. So I have some time to make sure they don’t break too often.
Truthfully though, I think they’re pretty close to prime time now. It’s just a matter of starting to introduce the technology into the larger vehicles that Americans like to drive.
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