8/26/05
The "Graham Effect" on mileage
The government's new gas-mileage rules for SUVs and other "light trucks" appear to be a victory for Detroit, since they will permit Ford and General Motors to build big gas-guzzlers like the Chevy Suburban and Ford Expedition without it penalizing their fleetwide fuel efficiency, as it does now. But the new rule also bears the imprint of John Graham, President Bush's "regulations czar," who insiders say had a direct role in crafting the new mileage scheme. Graham, who oversees all new federal regulations through his job at the Office of Management and Budget, is a former Harvard researcher who has written about the "adverse safety consequences" of cars that got progressively smaller after federal gas-mileage rules first went into effect in the 1970s, and manufacturers cut the weight of cars to make them more frugal. A 1992 study that Graham authored, for instance, argued against proposed legislation to boost mileage standards, predicting that the corresponding decrease in the size of cars could lead to 1,650 additional deaths from crashes, and 8,500 additional injuries.

The new mileage rule, which was officially published by the National Highway Traffic Safety Administration, strikes a similar chord, reports our Richard J. Newman. Citing the "adverse safety effects of downsizing and downweighting," the new regulation "lessens the incentive to design smaller vehicles." Instead, light trucks will have to meet mileage requirements in six different size categories. Graham, responding by E-mail, says his work on auto safety has been superseded by more recent studies that produced similar findings. And NHTSA produced the initial draft of the rule, he says, adding that his office only "took comments from other agencies and suggested improvements." Still, OMB, which is directly tied to the White House, often trumps other regulators, one reason many consumer and environmental groups opposed Graham's nomination to the OMB job in 2001.

Many of the same groups have complained about the new mileage rules, saying they will barely improve fuel-efficiency. It won't be easy to tell. The new rules include a complex matrix of 24 different gas-mileage targets for light trucks over the next several years, depending on the vehicle's size and model year. By 2011, for instance, the biggest trucks will have to average only 21.3 miles per gallon, compared with today's overall average of 22 mpg for all of an automaker's light trucks combined. And the rule will favor GM and Ford, which both build several vehicles in the heaviest categories, over manufacturers like Honda, which has none in the top tier. That should keep Detroit quiet. "We probably won't object," says one industry lobbyist.

To see the new mileage rules:
www.nhtsa.dot.gov

To meet John D. Graham:
www.whitehouse.gov

To check out Richard J. Newman's auto reviews:
www.usnews.com/auto

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8/23/05
Kennedy hits "Cowboy" Bush
While the Democratic Party might be torn on how hard to smack down President Bush's policies at home and abroad, old liberal lion Sen. Edward Kennedy isn't quieting his roar. In fact, in a new fundraising letter for the Democratic Senatorial Campaign Committee, Teddy K lashes out at just about everything Bush and the GOP do, from the war in Iraq to trying to cut funding for Big Bird.

"I urgently need you to help defeat this flagrant threat to our democracy," pens Kennedy in a copy provided to Whispers. "They're shameless! Their arrogance knows no limit. Never has it been clearer in American history that power corrupts, and absolute power corrupts absolutely. George Bush and his allies don't believe they have to answer to anyone but their hard-core supporters on the farthest fringe." On issues, he hits the Bush deficit, changes in environmental policy, moves to put conservatives on the court, and the president's foreign policy. "They've alienated crucial allies," says Kennedy. "George Bush's cowboy diplomacy and misguided war in Iraq have made America more hated in the world and made the war against terrorism harder to win." Republican officials just shrugged when told of the letter. One official characterized it simply as some Kennedy red meat to liberal donors.

Read the Kennedy letter

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8/11/05
Liberals are like penguins
Forget blue vs. red as the trait that determines liberal versus conservative cities. It's all about race. At least one group--the Bay Area Center for Voting Research--says so. Their proof: Liberal cities are largely black and conservative towns are mostly white, according to a new survey from the nonpartisan think tank.

"The great political divide in America today is not red versus blue," says Phil Reiff of the Center. "It's now clearly black versus white." His top examples: The most liberal city is Detroit, where blacks in the 2000 census made up about 80 percent of the population. The most conservative city is Provo, Utah, where blacks made up less than 1 percent of the population. "Detroit and Provo epitomize America's political, economic, and racial polarization," said Center researcher Janet Kim. "As the most conservative city in America, Provo is overwhelmingly solidly middle class. This is in stark contrast to Detroit, which is impoverished, black, and the most liberal."

Of course there are exceptions, though mostly on the liberal side. The No. three city on the liberal list, Berkeley, Calif., and No. eight, Cambridge, Mass., are very white. But the center has an excuse: Liberals need each other. "These liberal white communities," says Reiff, "are more reminiscent of penguins clustering together around a shrinking iceberg than of a vibrant, growing political movement."

Source: The Bay Area Center for Voting Research

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8/10/05
Why is Bush suddenly Mr. Economics?
Has anybody else noticed that President Bush has become the economic cheerleader-in-chief recently? On Tuesday he talked up the economy when surrounded by his financial team. On Wednesday in Illinois he said the pork-laden transportation bill would help workers. And if you check out the White House website, the prez has his economic team taking questions on the economy. So what gives?

Bush advisers say they're worried that the GOP isn't getting enough credit for the booming stock market, stifled inflation, and jobs growth. It makes sense, they added, because many Americans are facing higher gas and healthcare prices and are still worried about job security despite declining unemployment. The Bush team frets that if it doesn't change that attitude, the public will turn on House and Senate Republicans and threaten the president's majority on Capitol Hill. Right now, GOP polls show that the public disapproves of the way Bush is handling the economy. "We have to change that to a favorable number," said one Bush adviser. "The desire to do that is huge." Thus, the GOP has a new strategy that Bush is leading: Talk up the economy, but don't get carried away. "Say, 'We're almost there.' That we know the recovery hasn't touched everybody yet and promise that it will," is how one strategist explained the theme. Republicans believe the president has until next spring to change the public's attitude or face a very angry electorate in the fall of 2006 when the midterm elections take place.

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8/5/05
Clinton's not shying from the limelight
While most previous presidents have typically shunned press operations, former President Clinton's hiring of a new spokesman indicates that he plans to keep in the public eye. This week, the ex-president and his foundation announced the hiring of Jay Carson, who is a former Clinton advance man, former presidential candidate Howard Dean's spokesman, and most recently the communications guy with the New York City 2012 Olympics bid committee.

"He's in the family, so to speak," said a Democratic strategist. Carson has good contacts in the media, is well liked by reporters and is a high-energy operator, which has led observers to suggest that his hiring means that Clinton plans to lead an active public life. "I expect he wants to remain a player," said a Clinton ally. "He will be a player regardless. The question is on what capacity?" Carson will also be the spokesman for the William J. Clinton Foundation, which the former president uses as his base for travel and speaking on issues like HIV-AIDS. Carson replaces Jim Kennedy, a longtime Clinton aide who joined the Clinton White House as a spokesman for the president's legal team. Kennedy, a former aide to Sen. Joe Lieberman, followed Clinton to Harlem to help the ex-president set up his post-presidency office. Kennedy is moving to California to head the communications operation for Sony Pictures Entertainment. Clinton's move comes as his outfit is stepping up efforts to raise money to help fight AIDS in Africa. Just this week, for example, the foundation solicited donations to help fight AIDS.

The William J. Clinton Foundation: www.clintonfoundation.org

The Clinton AIDS fundraising memo: www.kintera.org

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8/3/05
D.C. Mayor: Nats aren't the Cards
If you want to get laid-back Washington, D.C., Mayor Anthony Williams riled up, just ask him why he wants to waste so many tax dollars building a new stadium for the city's new Nationals baseball team. Stop it, he chants, when critics and analysts say the city should just use old RFK Stadium, the standby home for the Nats. First, he says, the stadium is outdated. Second, there's nothing around the stadium for people to spend their money on. And third, he wants the new stadium in an area that could bring massive development and tax-base expansion to the city.

Talking to reporters Wednesday at a breakfast sponsored by the Christian Science Monitor, Williams said this about aging RFK, which has won fans for its old-fashioned look: "RFK is basically holding on; it's not long for this world." He added, "It's not going to fall down; it just isn't the modern stadium that's going to live well over time."

Next, he gets hot over the economics. He notes that many studies of new-stadium building concern cities that already had teams. "I don't think all cities are alike," said Williams. He said that there is "tremendous" investment interest at the new waterfront stadium site, whereas RFK sits in a residential area. In other words, this is a new opportunity for new money coming into the city. And, as a result, it's not like the city would be diverting spending from one area to another by moving the stadium. "Take St. Louis," he said to a St. Louis Post-Dispatch reporter, referring to the new Busch Stadium for the Cardinals being built near the current stadium. "You could make the argument that you are really gaining because those spending dollars are shifting" one neighborhood to another. "That's the difference with Washington, D.C. We didn't have a team." He predicts that the development around the new stadium will equal that of Washington's hip neighborhood around MCI Arena, home to the Capitals hockey and Wizards basketball teams.

Meet Mayor Williams

See who's been to the Monitor Breakfast recently

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8/2/05
Keeping an eye on China oil moves
Congressional opponents of China's CNOOC LTD oil giant buying Unocal Corp. fear that the deal could move ahead while Congress is recessed in August despite indications the U.S. oil company favors a bid from Chevron Corp. Their concern stems from a recent mention in a Wall Street Journal column that the Chinese firm would wait to boost its bid above Chevron's after Congress recessed to avoid the attention and criticism from lawmakers. A lobbyist working against the deal reveals that many lawmakers opposed to a CNOOC-Unocal agreement also fear something could happen during the summer vacation period when members are focused on other issues like campaigning and vacation. But, he said, "Some members will be keeping a watchful eye on what they do."

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