Posted on 08/02/2009 2:37:25 AM PDT by Need4Truth
The recently passed “cash for clunkers” program (currently on-hold, as it ran out of funding in one week) is a perfect example of how government policy can make the economy worse. By incentivizing Americans to destroy fully paid-for cars so they can go deeper into debt buying brand new ones, the government weakens an already crippled economy. The last thing we want to do is subsidize Americans to go deeper into debt by buying more stuff. Don’t they realize that is precisely the behavior that got us into this mess?
Think about it this way. If your friend were in trouble because he had too much debt, would you encourage him to take on even more? Wouldn’t a real sign of progress be a reduction of debt, even if he had to cut back on his everyday expenses?
(Excerpt) Read more at economicpolicyjournal.com ...
Liberals are very ill. Like Rush I wonder if it is learned or if they are born that way.
I saw a clip on Fox yesterday of a Republican mocking this program saying “May we need to have “Cash for Cluckers and give everyone a chicken” and it went on and on. The guys in the background were snickering. LOL!! I bet it is on YouTube.
“Liberalism is an infirmity that gives psychotics identity”
I wonder if it is airborn.? Is there a vaccine?
“Is there a vaccine?”
Yup.
Home schooling and FR.
It makes sense to the government, because it really isn't their money!
The government isn't about fiscal responsibility -- it's about taking your money, putting it into someone else's pocket, to help themselves get elected (oh, and taking a little sip from the fund stream as it goes by).
I'd be surprised if the next marches are not well-equipped with pitchforks and torches (in a symbolic demonstration of public fed-uppedness with the nonsense that has passed for government.
A few months ago the storage yards were overflowing with import cars that were not selling and they were running out of room to put these cars right off the ships.
I wonder what became of them, I have noticed that our local dealerships have almost no new cars on the lot, and I do not think they are selling any either.
I happen to live in Wasilla, Alaska and it was no small surprise that I saw a brand new Chevy Camaro cruising down the road today, I was going to buy one but I have nixed that idea indefinitely.
They shut down a bunch of dealers FIRST...scr***** them out of a piece of this. Nice play!!
The last thing we want to do is subsidize Americans to go deeper into debt by buying more stuff.
Don’t they realize that is precisely the behavior that got us into this mess?
Yes,yes they do.
But the assumption the writer posits is that the goal the Federal Government has(had) was to fix the economy.
That is not this President’s goal. Obama’s goalis to destroy the American economy totally so that the FederalGovernment can seize control of everything and complete the Socialist take over of America
The fallout from this program will indirectly sink the health care bill.
“cash for clunkers” what are they paying for a congres critter now?.
Yeah, ain't it great. Although I wish they'd stop the gimmicks and just give EVERYBODY a tax rebate of $4,500 without any jumping through hoops, this is actually the kind of stimulus that works. I have a friend who traded in a 15 year old Volvo for a new Accord on this plan. They are both physicians, so there is no problem paying off the new car - they'll prolly pay cash. I should tell them, "You're welcome" because I helped them buy their new car - LOL.
IT’S MY CASH! My taxes helping lib assholes by their new phase 3 Prius POS for 4.500 less. If you’re a Conservative just kill yourself and at least you won’t have to be around to see the lights go out on freedom and liberty!
Money misdirected towards new cars, when the old ones are fine, is money that will not be available for investment in other sectors of the economy, where it would naturally flow. It is Obama solidifying the vote of the financially unsophisticated--while he props up the union infiltrated auto industry--all the while distorting the natural flow of the economy.
In economic parlance, it is very inefficient allocation of capital, i.e., not letting the individual consumer and business person decide where to make their next investment.
I heard that lots of car dealers in the SF Bay Area have lined up expensive radio, TV and direct mail advertising campaigns and it is too close to the campaign launch to cancel them! They have to go forward whether the feds provide money for the program or not!
I so look forward to these people looking after my health.
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