11 March 2011

Spain's Speed Limits 'Bore' F-1 Champ

It isn't often that you see a Formula 1 champ talk politics (regardless of how political the F1 series actually is considering the FIA is like the UN of auto racing) but that is exactly what Fernado Alonso is doing

On the final Friday in February, the Spanish Government slashed the speed limit from 74.5 mph (considering they use kph over there) to 68 mph, in an effort to extract higher fuel efficiency.  The champ of the most prestigious racing league in the world basically said "I'll be bored."  I guess anyone addicted to speed, or used to driving in excess of 200 mph for work, would be bored at pedestrian speeds. 

Considering the measure is reactionary to the conflicts ongoing in the MENA (Middle East / North Africa) and rising oil prices, Spanish officials said they would reduce commuter rail fare to entice lower automobile use.  Though, just like any good government intervention, the law of unintended consequences rears its ugly head.   With these new measures in place the government stood a chance to loose out on more than $680 million in tax revenue from fuel use and associated economic activity.  Taking into account Spain's debt problem, and the fact that their bonds have been going Tango Uniform, something tells me that the "conserve until we die from higher interest rates" will only last so long (as politicians can deal without revenue like a vampire deals without the dark).

After all, it seems that the only thing conservation ever actually conserves is a lack of lower tax rates (or soverign debt crises).

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