Posted on 09/08/2009 9:21:57 PM PDT by worrywart
Poor people often can’t get a loan from an institution to buy a new car, so this ‘cash for clunkers’ thing wasn’t going to help them.
If they already own a used car, they will have a harder time finding parts for their cars because there will be less used units to build remanufactured parts from. These parts will also cost more. Supply and Demand.
If they need a car and want to buy one, oftentimes their only option would be a Used Car Dealer that ‘Totes the Note’ or advertises ‘Your Job is Your Credit.’ and short supply will end up making their costs higher through this route, as well.
Lose-Lose for everyone except those Dealers and a few people that got a steal on a cheap econobox.
I guess we could call this one, the Bigtime Cash for a Clunker program. Way to go Bammie.
And now with healthcare coming, we are a goner! And do not forget about the climate bill coming up next, then freebies for the illegals to become American citizens, robbing our Social Security and Medicare systems blind, with hardly any contribution having been made by them!
Go figure......
Ten thousand years from now, economics textbooks will mock the ignorance of President Barack Obama and his pathetic band of tax cheats and Communists.
Entirely predictable. In a downtrending economy, people want less expensive vehicles, less debt. If that means burning a little more gas, oh well, pay as you go. Crushing a million running used cars puts a dent in the market, so sure the price is going up, as will the cost of maintaining them (with the used parts from a million vehicles crushed too).
My Accord turned three yesterday. I’ll keep it til The One is The History.
_____________________________
Yes, Freedom will prevail! Take care of your car.
Wow, who’d have thunk it...
Spent thirty+ years in the business and this is precisely what I said was going to happen. This is what happens when people who have never run a lemonade stand think they can run a business or a country.
You guys are making me feel bad. Maybe I should swap my little car for a doggie-friendly vehicle.
Collectivist ideas are like the 3 Stooges.
Moe sees a cord coming out of a hole in the wall. He thinks it shouldn’t be there, so he gives it a vigorous yank. On the other end is Larry, who ends up getting his head slammed against the wall by the pull.
Every time the Marxists pull over here, somebody gets his head smacked over there. But they keep on doing it, because Marxism is never wrong.
I think we need to come up with another definition of the word intellectual.
$3b would be a nice down payment on a permanent moon base.
A kid at the auto shop a couple of weeks ago called it the “vehicle holocaust.” Thought it was a fitting term.
Cash for Clunkers was a great idea. It only had a few flaws:
1. It deepened national debt.
2. It grew government, since they had to hire people to process all of the transactions.
3. It destroyed perfectly good cars, throwing billions of dollars of usable assets into the wind.
4. It endangered the wellbeing of car sellers, who may or may not get reimbursed.
5. It sucked tens of thousands of Americans into deeper debt, at a time when they ought to be scrambling to eliminate household debt.
6. It sucked tens of thousands of Americans into investing in an asset which goes down sharply in value every year, at a time when Americans ought to be investing in stable assets, like precious metals.
7. It reinforces the lie for Americans that bigger government is benign.
8. It will inevitably encumber financers and car companies, when increasingly out-of-work and underfunded buyers will have thousands of cars repossessed in the coming years. This will result in excess inventory of repo’s on lots over the next 48 months, and financers eating a bunch of accounts receiveable.
9. Buyers of new cars are now encumbered with a whopping sales tax charge and annual license renewal taxes, since states charge more taxes for new cars.
10. Buyers of new cars now have significantly higher auto insurance bills than they had formerly.
11. The removal of decent used cars from the market puts a hardship on lower income families, who are the ones who generally buy them. Now, prices are higher for used cars.
12. Following a brief spike in purchasing, demand for new cars will dip even lower than before the C-4-C program began, meaning less income for the automakers.
13. Foreign car makers score bigtime, while the union-laden Government-owned makers get pounded by the competition. See current sales data for Ford/Toyota/Honda/Mazda vs. GM/Chrysler/Fiat.
Other than that, it’s just a marvy idea. Can’t wait for the same set of realities to hit the large appliance market.
Your brain is “null and void.”
Using taxpayer money to give to people is not doing them a favor. Especially when 25% of them will end up losing their new cars to repossession.
Think before you engage your brain.
Do what’s best for America, I bought a Toyota and that’s whst is best; You wop. And I love you without knowing you.
C4C is nothing more than the intentional destruction of wealth. Sorry Obama, you cannot destroy my classic car. It belongs to me!
#1 on your list should be the fact that it is creating a whole new class of citizens who are now dependent on the government and won’t make another major purchase without government incentives to do so. It’s a further significant erosion of individualism, self-reliance and freedom.
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