This is a perfect example of the fallacy of those in government who believe
that they should run the economy, regardless of their party affiliation. The
clunker program is typical in that it created a 'false economy', where people
did not pay the actual price of the goods they were purchasing, therefore
their purchase did not reflect the true demand for that product at that price.
Government has once again taken money from those individuals and businesses
that had nothing to do with these purchases to subsidize this 'false economy'.
This tactic diminishes the purchasing of other products and distorts their
price and demand curve. Worst of all, government diverts a portion of this
confiscated money for themselves to administer such programs, which adds no
value to the economy. Lastly, after the program ends, reality sets back in and
the reduced demand for these products leave the showrooms more empty than
before.
Had the government done nothing, the demand for these products would have
eventually sold the same amount of vehicles, the most desirable vehicles would
have been purchased, the most financially efficient companies would have been
rewarded for their product, all of us who did not purchase one of these
vehicles at this present time would have more money in our pockets towards
future purchases, and the size of government would have been reduced, albeit
small, yet if all these subsidize/give away programs were eliminated, it would
have a major positive effect in reducing the size and burden of government.
Economies do not run on 'hope'. They run on 'price and demand'. No matter how
hard they try, politicians cannot legislate the laws of economics.
Gary
P.S. I am WAY off topic.
--- On Sat, 9/5/09, mike schreiner <mikeflbmer@yahoo.com> wrote:
From: mike schreiner <mikeflbmer@yahoo.com>
Subject: [Tigers] clunker program
To: Tigers@autox.team.net
Date: Saturday, September 5, 2009, 6:03 AM
Yes, I saw the same here at our local u-Pull-it...Total waste of good cars and
our Tax Dollars....Further proof that Liberalism is a mental disorder!
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