Cash For Clunkers In Retrospect

[bitterlyclingin]

(If your program didn't stimulate the economy, didn't increase US Manufacturer market share, didn't improve US average fleet fuel economy by a heck of lot, but did drive up prices in the long run, what would you call it? Does it bring back images of the folks kicking, clawing, and gouging each, other trying to get their hands on the $1500 cash vouchers being handed out gratis in Detroit's COBO Arena just after Obama took office? You might call it mob mentality politics, but isn't that what community organizing is all about? Oh yeah! Then, there's OWS)

"Washington Post’s Ezra Klein’s substitute writer Brad Plumer got the unenviable job of having to admit that the government’s infamous Cash-for-Clunkers stealth auto dealership bailout – in which people traded in still-useable cars in exchange for trade-in money for a new car – didn’t particularly stimulate the economy, didn’t improve US car manufacturer’s market share, and “increased average fuel economy in the United States by just 0.65 miles per gallon.” The trigger event for this admission was this Resources For the Future report that is fairly damning, in its somewhat dry and equation-laden way: of course, we on the Right were all yelling about this issue right from the start, but it’s still nice to see some math backing us up.

Still, Klein’s substitute doesn’t consider another economic factor: what happened as a result of taking used cars off of the market. You see, there’s a considerable demand for almost worn-out cars: poor people, young people, and/or urban minorities can maintain them well enough to be cost effective – if the price is low enough. And what happens, class, when demand remains the same but the supply decreases?

That’s right: prices go up."

Cash for Clunkers’ failure: minorities, poor people hardest hit. | RedState

 

[PLYMCO_PILGRIM]

(If your program didn't stimulate the economy, didn't increase US Manufacturer market share, didn't improve US average fleet fuel economy by a heck of lot, but did drive up prices in the long run, what would you call it? Does it bring back images of the folks kicking, clawing, and gouging each, other trying to get their hands on the $1500 cash vouchers being handed out gratis in Detroit's COBO Arena just after Obama took office? You might call it mob mentality politics, but isn't that what community organizing is all about? Oh yeah! Then, there's OWS)

"Washington Post’s Ezra Klein’s substitute writer Brad Plumer got the unenviable job of having to admit that the government’s infamous Cash-for-Clunkers stealth auto dealership bailout – in which people traded in still-useable cars in exchange for trade-in money for a new car – didn’t particularly stimulate the economy, didn’t improve US car manufacturer’s market share, and “increased average fuel economy in the United States by just 0.65 miles per gallon.” The trigger event for this admission was this Resources For the Future report that is fairly damning, in its somewhat dry and equation-laden way: of course, we on the Right were all yelling about this issue right from the start, but it’s still nice to see some math backing us up.

Still, Klein’s substitute doesn’t consider another economic factor: what happened as a result of taking used cars off of the market. You see, there’s a considerable demand for almost worn-out cars: poor people, young people, and/or urban minorities can maintain them well enough to be cost effective – if the price is low enough. And what happens, class, when demand remains the same but the supply decreases?

That’s right: prices go up."

Cash for Clunkers’ failure: minorities, poor people hardest hit. | RedState

It sure did screw over those of us who work for auto repair shops.

It hurt our basic repair business as people just got rid of cars instead of fixing them and directly led to several layoffs in my local repair industry.....things have re-balanced now back to where they were so the damage has been corrected thank god.

 

[BDBoop]

DOT Press release

Cars made in America topped the most-purchased list, from the Ford Focus to the Toyota Corolla to the Honda Civic.

"American consumers and workers were the clear winners thanks to the cash for clunkers program," said U.S. Transportation Secretary Ray LaHood. "Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel efficient cars that will save them money and improve the environment."

"This is one of the best economic news stories we've seen and I'm proud we were able to give consumers a helping hand," Secretary LaHood said.

 

[PLYMCO_PILGRIM]

DOT Press release

Cars made in America topped the most-purchased list, from the Ford Focus to the Toyota Corolla to the Honda Civic.

"American consumers and workers were the clear winners thanks to the cash for clunkers program," said U.S. Transportation Secretary Ray LaHood. "Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel efficient cars that will save them money and improve the environment."

"This is one of the best economic news stories we've seen and I'm proud we were able to give consumers a helping hand," Secretary LaHood said.

Yeah cash for clunkers was great for coroprate fat cats at the big 3 car manufacturures but used car people and car repair shops took a hard hit and had to lay people off and some even went out of business as a result of the unfair govt support of big car companies over the little guy.

 

[Baruch Menachem]

Typical liberal politics. Say you are doing it for the little guy who gets screwed seven ways from Sunday, and as a take that to the fat cats, who wind up getting engorged.

 

[strollingbones]

cash for clunkers screwed people like me who dont buy new cars and depend on the 'used' market for cars.....it is impossible now...and trying to get parts....

i have oftened wondered what became of the repo cars...the economy crashed right after that.....people were all about 700 buck payments.....then suddenly the crash

 

[Brutus]

You see, there’s a considerable demand for almost worn-out cars:

1) yes cash for clunkers was BO at his liberal Keynesian dumbest. He thought a little liberal stimulus like that would be enough to tip the economy in the right direction.

In reality it simply increased auto sales for a couple of weeks and then decreased them for a couple of weeks with no net gain.

Worse, it raised the price of used cars on which poor people depend!!

Now we can understand how stupid liberalism is. It should be made illegal as our Founders intended

 

[Brutus]

Typical liberal politics. Say you are doing it for the little guy who gets screwed seven ways from Sunday, and as a take that to the fat cats, who wind up getting engorged.

liberals love to stand up for the little guy but also love to let 20 million illegals into the country to steal their jobs!!

 

[whitehall]

It was a typical community activist type stunt designed to spike the sagging auto market long eough to get democrats elected.. It was an economic and political failure. It was such a joke that Barry would have been laughed out of Washington if the liberal media was honest.

 

[PLYMCO_PILGRIM]

cash for clunkers screwed people like me who dont buy new cars and depend on the 'used' market for cars.....it is impossible now...and trying to get parts....

i have oftened wondered what became of the repo cars...the economy crashed right after that.....people were all about 700 buck payments.....then suddenly the crash

Just think about the salesmen and used car lot owners who had no cars to sell at a profit to pay their paychecks and lease/rent for their locations too....thats a few more unemployed people