CEI Daily - Washing Machines, Liquor Wholesalers, and New Bailouts


Washing Machines


New models of top-loader washing machines don't work as well as old models----thanks to energy efficiency mandates.


General Counsel Sam Kazman explains the decline of the washing machine in today's Wall Street Journal.


"The federal government first issued energy standards for washers in the early 1990s. When the Department of Energy ratcheted them up a decade later, it was the beginning of the end for top-loaders. Their costlier and harder-to-use rivals—front-loading washing machines—were poised to dominate. Front-loaders meet federal standards more easily than top-loaders. Because they don't fully immerse their laundry loads, they use less hot water and therefore less energy. But, as Americans are increasingly learning, front-loaders are expensive, often have mold problems, and don't let you toss in a wayward sock after they've started. When the Department of Energy began raising the standard, it promised that 'consumers will have the same range of clothes washers as they have today,' and cleaning ability wouldn't be changed. That's not how it turned out."



Liquor Wholesalers


Yesterday marked James Madison's birthday.


Director of Risk and Environmental Policy Angela Logomasini talks about how current efforts by liquor wholesalers would offend James Madison.


"Liquor wholesalers’ attempts to rationalize federal alcohol legislation would appall James Madison, the father of the Constitution. Wholesalers claim their legislation will protect “states’ rights.” But their proposal would only serve their narrow special interest at the expense of individual freedom and prosperity — exactly the opposite of what the framers of the Constitution intended."



New Bailouts


The Washington Post reports that bureaucrats at the Consumer Financial Protection Bureau want to bailout underwater mortgage borrowers.


Senior Counsel Hans Bader explains what's wrong with their proposal.


"Their proposal would require banks to write off part of the mortgages of certain (but not all) mortgage borrowers who owe more on their mortgage than their house is worth. Worse, they would require mortgage servicers to write off loan principal on loans owned by other institutions, like pension funds, violating their property rights."