Forgotten Costs of Driving

While the media writes and talks endlessly about Big Oil and the
“unfair” cost of gas these days, another element that contributes to
the costs of driving a car—government policy and regulation—goes
unreported. Writing in the Raleigh News & Observer, Daren Bakst explained
that North Carolina restricts the location of auto dealerships in a
misguided effort to help dealers by making sure one business isn’t too
close to another selling the same cars. It started in 1955, Bakst
wrote, when policymakers decided to protect dealers from powerful
manufacturers they believed were taking advantage of them.
Clearly, government shouldn’t manipulate the market. “Enhancing competition in auto sales can only
improve service and reduce prices,“ Bakst wrote, “thus conferring
significant benefits on consumers.” Read Bakst’s full Spotlight paper
on auto dealer protectionism here. In a related matter, this week John Hood discussed gas taxes with the Wilmington Star-News.