Fueling Innovation

By Bill Maher

We usually hear about how regulation suffocates business and for years the Chicken Littles on the right warned against fuel-efficiency standards, saying it would make us less competitive. But now the EPA is implementing new rules -- 34.5 MPG by 2016 and 54.5 MPG by 2025 for all American-made cars and light trucks -- and they're totally uncontroversial. Environmentalists love them because they're good for the planet, consumers love them because they save on gas, and even auto companies will admit that they're spurring innovation.

Two questions:

1) Doesn't this prove that some regulations can actually be good for capitalism?

2) Could the government have demanded these standards 15 or so years ago and saved the auto industry from itself?