Comments on: Cash for Clunkers = Cash for Unions http://dailycapitalist.com/2009/08/03/cash-for-clunkers-cash-for-unions/ Economics, Finance, and Investment Risk Sat, 31 Jul 2010 02:17:03 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: That Nice Mrs. Romer Is . . . Dangerous | The Daily Capitalist http://dailycapitalist.com/2009/08/03/cash-for-clunkers-cash-for-unions/comment-page-1/#comment-3477 That Nice Mrs. Romer Is . . . Dangerous | The Daily Capitalist Wed, 09 Dec 2009 08:35:22 +0000 http://dailycapitalist.com/?p=1453#comment-3477 [...] this did was to junk a bunch of good cars, fill the pockets of auto dealers, and appease the UAW. Auto sales are already declining again. All this did was to borrow against future sales of people [...] [...] this did was to junk a bunch of good cars, fill the pockets of auto dealers, and appease the UAW. Auto sales are already declining again. All this did was to borrow against future sales of people [...]

]]> By: Q3 GDP: Proceed At Risk | The Daily Capitalist http://dailycapitalist.com/2009/08/03/cash-for-clunkers-cash-for-unions/comment-page-1/#comment-3412 Q3 GDP: Proceed At Risk | The Daily Capitalist Fri, 30 Oct 2009 19:42:06 +0000 http://dailycapitalist.com/?p=1453#comment-3412 [...] is not real economic growth. As many observers have pointed out, Cash for Clunkers just borrowed sales from the future, so that we can expect that Q4 will show a [...] [...] is not real economic growth. As many observers have pointed out, Cash for Clunkers just borrowed sales from the future, so that we can expect that Q4 will show a [...]

]]> By: Lloyd G. http://dailycapitalist.com/2009/08/03/cash-for-clunkers-cash-for-unions/comment-page-1/#comment-3194 Lloyd G. Wed, 05 Aug 2009 23:52:17 +0000 http://dailycapitalist.com/?p=1453#comment-3194 It would be interesting to poll the people who took the free gov't money: Were they planning on buying a new car within the next year anyway? I would guess at least 90% were. The free money made them decide to do it last week, vs. "sometime later." All this program did was move up the purchase. And cost the taxpayer a billion bucks (or is it $3 billion now?). Net gain to the economy? Negative one billion (soon to be 3). A lot of folk who question the economics of the C4C deal shrug it off -- after all, what's a billion (or 3) compared to the trillions thrown at the banks, or the trillions that will be spent in the next few years on health care "reform," "green" energy, etc.? True, in gov't money terms a billion (even 3) is not a lot, but this "dramatic success" will surely be used to justify even more stupendous successes. If 222,000 people can be persuaded to buy cars if you give them $3,500 or $4,500, surely a lot more will jump in if we give everybody $20,000. Especially now the the US gov't owns Chrysler and GM, and every congressman and senator has dealers and suppliers in their district -- and because Keynesian theory has displaced what used to be called "commonsense" -- watch out. You ain't seen nothing yet. It would be interesting to poll the people who took the free gov’t money: Were they planning on buying a new car within the next year anyway? I would guess at least 90% were. The free money made them decide to do it last week, vs. “sometime later.” All this program did was move up the purchase. And cost the taxpayer a billion bucks (or is it $3 billion now?). Net gain to the economy? Negative one billion (soon to be 3).
A lot of folk who question the economics of the C4C deal shrug it off — after all, what’s a billion (or 3) compared to the trillions thrown at the banks, or the trillions that will be spent in the next few years on health care “reform,” “green” energy, etc.? True, in gov’t money terms a billion (even 3) is not a lot, but this “dramatic success” will surely be used to justify even more stupendous successes. If 222,000 people can be persuaded to buy cars if you give them $3,500 or $4,500, surely a lot more will jump in if we give everybody $20,000. Especially now the the US gov’t owns Chrysler and GM, and every congressman and senator has dealers and suppliers in their district — and because Keynesian theory has displaced what used to be called “commonsense” — watch out. You ain’t seen nothing yet.

]]> By: Jeff Harding http://dailycapitalist.com/2009/08/03/cash-for-clunkers-cash-for-unions/comment-page-1/#comment-3190 Jeff Harding Wed, 05 Aug 2009 19:07:19 +0000 http://dailycapitalist.com/?p=1453#comment-3190 Lloyd, I am shocked that you wish to ruin our environment by letting these polluting machines foul the air. ;) Actually what I don't understand is why they wish people to take on more debt to buy cars they don't need after the biggest debt bonanza in history. Lloyd, I am shocked that you wish to ruin our environment by letting these polluting machines foul the air. ;) Actually what I don’t understand is why they wish people to take on more debt to buy cars they don’t need after the biggest debt bonanza in history.

]]> By: Lloyd G. http://dailycapitalist.com/2009/08/03/cash-for-clunkers-cash-for-unions/comment-page-1/#comment-3183 Lloyd G. Wed, 05 Aug 2009 10:54:24 +0000 http://dailycapitalist.com/?p=1453#comment-3183 Here's a C4C instructional video for how to destroy a perfectly good car: http://www.youtube.com/watch?v=X0IcIxhd8ks Dealers are supposed to destroy the engine and drive train of each C4C car, so these can't be salvaged. Democrats like to posture as the party of the little guy. If C4C is expanded and made permanent, instead of a limited first-come-first-served program, the base price for used cars will be $3,500 and the repair costs for older cars will be much more expensive, because salvage yards will be denied access to parts from C4C turn-ins. You'll have to get your spare parts from outfits like NAPA, or the dealerships. Who is this going to hurt? The poor. On a humorous note, this program was conceived to help out Detroit and the UAW. It turns out 6 out of the top 10 cars purchased under this program are foreign: http://jalopnik.com/5328941/ten-most-traded+in-and-purchased-cash-for-clunkers-vehicles/gallery/ The gov't's treating people like lab rats in a behavior control experiment makes people think like lab rats. I have an older Geo Metro that I've been thinking of trading in for a new car. Under the 'Cash for Clunkers' program, I would get nothing for my car because it's combined mileage is better than 19 mpg. Planning ahead, I'm thinking of buying an old Lincoln or Cadillac now (these can be had for $1 - 1.5K), driving it over the winter, and then trading it in next summer. I am assuming that the C4C program will still be in effect then -- and may be even more incentive-y. Here’s a C4C instructional video for how to destroy a perfectly good car:
http://www.youtube.com/watch?v=X0IcIxhd8ks

Dealers are supposed to destroy the engine and drive train of each C4C car, so these can’t be salvaged.

Democrats like to posture as the party of the little guy. If C4C is expanded and made permanent, instead of a limited first-come-first-served program, the base price for used cars will be $3,500 and the repair costs for older cars will be much more expensive, because salvage yards will be denied access to parts from C4C turn-ins. You’ll have to get your spare parts from outfits like NAPA, or the dealerships. Who is this going to hurt? The poor.

On a humorous note, this program was conceived to help out Detroit and the UAW. It turns out 6 out of the top 10 cars purchased under this program are foreign:

http://jalopnik.com/5328941/ten-most-traded+in-and-purchased-cash-for-clunkers-vehicles/gallery/

The gov’t's treating people like lab rats in a behavior control experiment makes people think like lab rats. I have an older Geo Metro that I’ve been thinking of trading in for a new car. Under the ‘Cash for Clunkers’ program, I would get nothing for my car because it’s combined mileage is better than 19 mpg. Planning ahead, I’m thinking of buying an old Lincoln or Cadillac now (these can be had for $1 – 1.5K), driving it over the winter, and then trading it in next summer. I am assuming that the C4C program will still be in effect then — and may be even more incentive-y.

]]> By: joanbob http://dailycapitalist.com/2009/08/03/cash-for-clunkers-cash-for-unions/comment-page-1/#comment-3180 joanbob Wed, 05 Aug 2009 01:36:04 +0000 http://dailycapitalist.com/?p=1453#comment-3180 Where in the Constitution does it say the government can subsidize auto purchases? Where in the Constitution does it say the government can subsidize auto purchases?

]]> By: Jeff Harding http://dailycapitalist.com/2009/08/03/cash-for-clunkers-cash-for-unions/comment-page-1/#comment-3176 Jeff Harding Tue, 04 Aug 2009 17:44:44 +0000 http://dailycapitalist.com/?p=1453#comment-3176 Bob, I'm not that clever. Thanks for catching my mistake. Do Republicans have souls? Thanks for the compliments. Bob, I’m not that clever. Thanks for catching my mistake. Do Republicans have souls?
Thanks for the compliments.

]]> By: Bob Hobert http://dailycapitalist.com/2009/08/03/cash-for-clunkers-cash-for-unions/comment-page-1/#comment-3174 Bob Hobert Tue, 04 Aug 2009 14:44:32 +0000 http://dailycapitalist.com/?p=1453#comment-3174 editing isn't my forte either - faulty near-vision! editing isn’t my forte either – faulty near-vision!

]]> By: Bob Hobert http://dailycapitalist.com/2009/08/03/cash-for-clunkers-cash-for-unions/comment-page-1/#comment-3173 Bob Hobert Tue, 04 Aug 2009 14:39:13 +0000 http://dailycapitalist.com/?p=1453#comment-3173 Good piece om clunkers - it's a bogus idea, smoke and mirrors. One small edit - Bless their soles should read Bless their souls unless you are ahead of me on sarcasm, which would be a lot. Keep up the fine blogs Jeff. Good piece om clunkers – it’s a bogus idea, smoke and mirrors.

One small edit -

Bless their soles should read Bless their souls unless you are ahead of me on sarcasm, which would be a lot.

Keep up the fine blogs Jeff.

]]> By: Cash for Clunkers = Cash for Unions « Thinking Things Through http://dailycapitalist.com/2009/08/03/cash-for-clunkers-cash-for-unions/comment-page-1/#comment-3171 Cash for Clunkers = Cash for Unions « Thinking Things Through Tue, 04 Aug 2009 11:08:43 +0000 http://dailycapitalist.com/?p=1453#comment-3171 [...] via Cash for Clunkers = Cash for Unions | The Daily Capitalist. [...] [...] via Cash for Clunkers = Cash for Unions | The Daily Capitalist. [...]

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