The Nashville Business Journal posted a story yesterday about the economic aspects of buying a hybrid car. There are a few hybrid cars that are an economical choice after two years–Toyota’s Prius ($23,537), Lincoln’s MKZ ($33,887) and Volkswagen’s diesel-powered Jetta TDI ($25,242). There are a few that take considerably longer–the Nissan’s all-electric Leaf ($28,421) takes nine years for its owner to break even and the Chevy Volt takes 26.6 years.
All of that is true, but there is another aspect of this. President Obama’s energy department has always had the goal of making gasoline prices high–it was stated before President Obama was elected that he had no problem with high gas prices–he just wanted those prices to be reached gradually. As the price of gasoline passes four dollars a gallon on its way to five dollars a gallon, you have to wonder what the magic price per gallon is that will make these cars economical for the average buyer. What would the price of gasoline have to be in order to justify the amount government money invested in the Chevy Volt? Would that justify the crony capitalism involved?