The Automobile and the Economy

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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 steadily increased for the most part thanks to better engineers, tires, and laws that force better efficiency. First, The Energy Policy and Conservation Act of 1975 established C.A.F.E. (corporate average fuel economy) which was meant to steadily increase fuel efficiency in passenger cars every year (http// . The only problem was oil prices softened and the demand for small cars that were the most efficient diminished. As a result, the N.H.T.S.A (National Highway Traffic Safety Administration) was forced to relax the standard of the model years 1986-1989. The standard for automobiles of today is 27.5 miles per gallon. In the 1990’s the United States had an increased urgency raise their standards as they were more dependent on importing oil instead of producing it. Currently, the Clinton Administration is going to great depths to try to increase fuel efficiency. Bill Cliton made a partnership with the domestic industry to develop a new... ... middle of paper ... Manufacturing Industries Act”. October 27 1996. Internet Explorer. Online. March 1 1998. “Auto Production to Expected 3 Million Next Year”. Short Takes. Internet Explorer. Online. September 17 1997. http// “Automobile Fuel Economy”. CRS Issue Brief for Congress. Internet Explorer. Online. October 8 1997. http// “Do Automobile Fuel Economy Standards Work?”. Do Automobile Fuel Economy Standards Work?. December 10 1996. Internet Explorer. Online. March 10 1998. http// “How TV Wizardy Made Stock Car Racing the Hottest, Family-friendliest Sport Around”. Nascar Nation. December 11 1997. Internet Explorer. Online. March 11 1998.
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