Cash For Clunkers Proves To Be A Cost Clunker!
We’ve previously discussed some of the various problems of the boondoggle known as Cash For Clunkers.
Now William A. Jacobson of Legal In-sur-rec-tion has collected some studies and an article to verify the facts.
Cash for Clunkers Driving Up Prices
The much ballyhooed Cash for Clunkers program has had the unintended consequences of driving up the cost of new and used vehicles and used auto parts, according to independent studies of the auto markets….
While Cash for Clunkers is being portrayed as a success, in reality it is driving up prices for consumers of all vehicles and used parts, but hits used car buyers and those who cannot afford a new car the hardest because the government rebates only apply to new vehicles. More important, this government program is likely to create a substantial distortion of market forces and a collapse of demand once the program ends.
Only in Washington could a program which uses borrowed money to drive up consumer prices, including a bubble in used car prices, be considered a success. I can’t wait for health care restructuring and cap-and-trade.
Jacobson has information and links to a press release from Edmunds.com on new car prices, a Kelley Blue Book August Report on used car prices, and a Dayton Daily News article on used auto parts prices.
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H/T: Legal In-sur-rec-tion
[1]
Off-topic: Obama slips to -9 in Rasmussen Daily Presidential Polling (49 approval/51 disapproval).
http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll
[2]
I’m not surprised it’s down–the only surprise is that it’s not in double digits!
[3]
{ot}
Instead, the U.S. Census Bureau is set to count all persons physically present in the country—including large numbers who are here illegally. The result will unconstitutionally increase the number of representatives in some states and deprive some other states of their rightful political representation. Citizens of “loser” states should be outraged. Yet few are even aware of what’s going on.
WSJ
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Comment by Howard Dean 1/20/13 — 8/10/2009 HHR
Time for armed rebellion.
[4]
Wow!
Thanks, KH.
I’ll try to write that up in a thread. It needs to be separate.
[5]
Democrats on an Escalator
http://www.youtube.com/watch?v=XivNwQ76mCs
[6]
Just remember: in the real world they’re shutting Detroit down.
http://www.youtube.com/watch?v=sI1TPJ4xURI
[7]
I was listening to a woman who used to work in the Bush Administration dealing with aquisitions and basic purchases of bureaucratic needs. She is now a reporter.
Her economic take on the C4C program is that there is considerably more taxpayers dollars, than the up front $3500-4500, that is going to be spent on this program.
When she systematically went through all the incidentals it was more like $6000 plus dollars going out the empty coffers to this freebie program! Maybe that is why they are running out of money so fast!
She also added that there was no oversight or controls for out of country or illegals to cash in on what is supposed to be an American stimulus program.
[8]
janzam,
This program will become permanent. The reason is little to do with economics and everything to do with control. Eventually some staffer will figure out that hey, if we offer this then we get to dictate some rules too. Like say, they get to tax based on miles driven. Or they can add any dodad to your car to track you as they wish. Or they can raise your public option health insurance because you speed.
Surprised they have not thought of this yet.
[9]
Yes, it will be permanent. The USA stares up from the bottom of it’s open grave…..Who will grab a shovel?