The Motley Fool Discussion Boards
Retirement Discussions / Retire Early Liberal Edition
|Subject: Re: cahs for clunkers - disaster of a program||Date: 1/7/2013 5:03 PM|
|Author: telegraph||Number: 47235 of 67139|
"As I understand it, the reasoning behind the CARS program was to encourage people not to delay new car purchases they had been postponing due to the Bush Depression. Basically a consumer-side auto industry bailout that moved future auto sales into the present. I never heard anyone suggest there would be a net gain of sales over time. In other words, the 1850 gallons of gas manufacturing a new would have been consumed at some point anyway. That was part of the point of the Edmonds article you linked to, wasn't it? "
Only partially right.
If you had vehicles that had 10 or 15 years of life in them, and kept them running, or kept OTHER vehicles running with their parts when they had accidents or had other reasons they stopped running...... and kept them going that time...it means you would not have had to waste billions of gallons of gas to make new ones.
the more new ones you sold, scrapping perfectly good old cars....the sooner the replacements will need replacing, eating up even more fossil fuels in the process.
SO no....this program only moved 'forward' 125,000 sales...and then, of course, sales slumped..and in the end...no new 'demand' was created.....
meanwhile, used car dealers went bust, the poor probably went jobless since they couldn't find parts to keep their cars running.
And you got to spend $24,000 per new car bought......
I hope you enjoyed buying your neighbor down the street a nice new car...... and maybe one block over....
who probably 'traded in' a total wreck that barely moved....and worth next to nothing and got 4500 in free money for it.....
or..maybe traded in a nice but old car..that your teenager might have bought this summer for a summer job. Instead, you'll have to pay a whole lot more...or did.....since obama skyrocketed used car prices.
the only consumers who 'won' were folks who were going to buy a new car anyway...... and they laughed all the way to the bank with your money.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|