One of the least enjoyable aspects of working is the process of actually getting to work. For nearly 85 percent of Americans, that means driving a car, truck, or some other vehicle an average of 27.6 minutes each way. That compares to an average of 25 minutes in the European Union and represents nearly an hour of each day that is mostly wasted. Millions more Americans, meanwhile, are stuck using mass transit systems that are unnecessarily costly, slow (average one-way bus commute time: 46.6 minutes), or unreliable. The country can do better. As I explain in the new Cato Institute book Empowering the New American Worker: Market‐based Solutions for Today’s Workforce, while commuting may be an unfortunate reality of working life, changes to public policy—including trade policy—can help ease this burden for American workers.
The pain of commuting begins with obtaining the means to get to work—some kind of vehicle for most people—and that’s not cheap. The average price of a new subcompact car currently runs over $23,000 and things only get more expensive from there. Such prices are partly due to tariffs on autos and auto parts. Although typically modest at 2.5 percent, such duties can spike as high as 25 percent for light trucks—the infamous “chicken tax”. Tariffs on inputs such as steel and aluminum also exert upward pressure while imported tires from several Asian countries are subject to duties that can reach over 100 percent.
Other government policies further drive up costs. CAFE standards meant to improve gas mileage require automakers to make costly capital investments that are passed along to consumers. Laws that prohibit auto manufacturers from selling directly to consumers and impose other restrictions to spare dealerships from competition are found in most states. Jones Act shipping restrictions and the Renewable Fuel Standard increase the cost of gas. Occupational licensing laws and immigration restrictions reduce the supply of mechanics and increase auto maintenance costs.
It all adds up.
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