Cash for clunkers to hurt poor… Surprised?

Auto industry experts are predicting that the “altruistic, well meaning” ‘Cash for Clunkers’ program will cause an unexpected consequence. The prices of used cars will be, according to some reports, raised 10% over their pre-clunker prices. The supply of used cars will be much tighter since the ‘clunkers’ are required to junked. Some experts say over 700,000 used cars will be pulled from the marketplace by the program. Of course this means the long term impact upon the less well to do will be negative. Is anyone surprised? When the government messes with the free market it always causes chaos. While the reports I’ve read say this was an unintended consequence, I’m not so willing to concede that point. We all know Al Gore and his crowd would like nothing more than for everyone to be on public transportation. Making used cars less affordable would be an added bonus for that crowd. Of course Gore and fellow elite class members will still have their private jets and and limousines. (Sounds very much like the Soviet bread lines while fat cats ate caviar.)

Also being hurt badly are used car dealers. They are seeing potential buyers dry up while seeing the wholesale prices on used cars climb. People who, under normal circumstances, would have shopped for a used car are looking at new ones. This program has disrupted the marketplace for years to come.

The upshot is that some folks who are in a financial position to buy a new car now will get a little benefit in the form of the $4,500 clunker check. Those of you who are not set to buy a new car in the worst economy since the Great Depression are out of luck. You’ll pay through the nose when it’s time for a ‘new’ used car. If there are any used car dealers around when that time arrives.

These people cannot manage a billion dollar auto buying program. Who really belives they can buy run our health care system. Keep your hands off my health care!