The Motley Fool Discussion Boards
Retirement Discussions / Retire Early Liberal Edition
|Subject: Re: cahs for clunkers - disaster of a program||Date: 1/9/2013 2:09 PM|
|Author: telegraph||Number: 47244 of 59162|
dkye:"You're arguing against yourself again. If there was no new net demand for cars created, then the same amount of energy would have been used to make new cars either way. "
wrong wrong wrong
Because most of the trade ins were destroyed...engines ruined, their useful life was terminated.
There are tens of millions of cars out there 10 and 20 years old, still running well and providing LOWER INCOME folks with transportation...and for college students, interns, and others not making lots of money and not able to afford a new car.
You took all of those clunkers off the road and destroyed them.
That was a total waste of 'energy' in the world. You blew it.
It's like Krugman's theory of breaking windows to stimulate economic activity. Break 10,000 windows in a city, and you stimulate all sorts of activity..windows have to be made. Windows have to be sold. Windows have to be installed. SOmone pays a trash man to haul them away..... unfortunately, you are just taking money from the window owner and giving to to someone else. No new 'wealth' has been created. You've taken it from one and given it to others.
Same for C4C.....you took 'valuable' cars that had dozens of years of life left in them, or could have been used to keep tens of millions of others running...and destroyed them. Forced most to be crunched because of the silly rules and time frames involved. All those spare parts.....crunched....
So if you needed a door for a Toyota or Honda...where someone backed into your door...tough luck....you now have to buy a new , energy hogging, replacement part at $1400 since the junk yard had to scrap 10,000 of them for C4C.
Big waste of 'energy' and 'oil' for a failed greenie program and union payoff program.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|