In the US, in important consumer areas like banking and automobiles, we pass legislation that protects consumers and keeps them safe.  In theory.  We have often discussed the problem of banking regulation on this site.  The ongoing Volkswagen emissions scandal is part and parcel with our failure to jail culpable bankers.

In this case, we regulate fuel emissions to improve the environment.  Often car manufacturers conduct the emissions tests.  If they don’t, the test are conducted in controlled venues.  Cr manufacturers have figured out how to make cars look like they are complying with emissions standards  under these tests.  When the car goes out on the road, the car no longer meets the standards.

In Europe and in the US, diesel cars are desirable because they burn less fuel.  However, with emissions standards, it is apparently difficult to make a profit with a fuel efficient, environmentally-sound vehicle.

What happened with VW was Libor on wheels.  There is no doubt that other car manufacturers will be outed.  Ford already made a deal with the government.

If we take the time to make rules and laws, shouldn’t we try hard to enforce them?   Slowly people like Senators Warren and Sherrod Brown are calling the public’s attention to banking irregularities that tear down economies.  Cars will be next.