Morley Winograd, co-author with Michael D. Hais of Millennial Makeover: MySpace, YouTube, and the Future of American Politics, served as Senior Policy Advisor to Vice President Gore where he witnessed the events described in this article. Both authors are also fellows of NDN and the New Policy Institute. This article was originally posted on the NDN blog.
As the announcement of Rick Wagoner’s resignation as CEO of General Motors makes clear, the enormous investments the federal government has been making in private enterprises, including the auto industry, will severely test the ability of private sector executives to meet the expectations of their new government bosses. The long-term credibility of Detroit now rests on their ability to win over the rising generation of Millennials, born between 1982 and 2003, who are the future consumers for the auto industry—and the core of President Obama’s political support. Their environmental focus and civic minded attitudes will challenge executives to align their private sector goals with public policy in ways the country has not witnessed since the New Deal. Sadly, so far, it’s a test many business leaders seem likely to fail.
In the case of the American auto industry this failure has deep roots. Attempts to nudge Detroit into producing more fuel-efficient vehicles have been going on since the 1973-4 Arab Oil embargo, which led Congress to establish Corporate Average Fuel Efficiency (CAFÉ) standards for cars and light trucks. When Bill Clinton became President he agreed to delay the adoption of higher CAFÉ standards until it could be proven that such goals were attainable.
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