Friday, July 31, 2009

No friend to the poor and middle class.

Apparently, people are so thrilled to receive $4500 from the rest of us to purchase new cars, that we burned through a billion dollars in a week & exhausted the Cash for Clunkers fund. However, in the interest of making sure auto industry recently acquired by Washington stays afloat, it seems like we'll get to pay even more people to buy new cars.

What is even further amusing is this statement from the White House:

"The program will be in place" for anyone who had been planning to make a car purchase this weekend, White House spokesman Robert Gibbs told CNN. "This program appears to be a success for car buyers, car dealers, car companies and taxpayers." (emphasis mine)

While it is no stretch that purchasers that meet the requirements are happy to get $4500 off their tab, and dealers & car companies won't complain at the brief boost it provides them, how exactly is it a "success" for taxpayers to be buying new cars for other people?

Not only are taxpayers losers in this scheme, so are carbuyers in the market for used cars. There are plenty of folks who can't afford a new car - even if they are given $4500 to do so. A 1997 Mercury Cougar in good condition could be had for $2000, but suddenly, the base price for that vehicle is $4500 - which means the poor & frugal are losers.

This is completely besides the fact that the dealer is required to crush the '97 cougar (even if it was in mint condition) as part of the "Cash for Clunkers" bill. So not only is the base price for used cars hurting the poor, since these cars are being destroyed, the supply of used vehicles has shortened which in turn drives the price up further.

In spite of their talk, liberals are no friends to the poor and working class.

No comments:

Post a Comment