Cash for Clunkers’ failure: minorities, poor people hardest hit.


Or: Why Johnny Can't Drive.

Washington Post’s Ezra Klein’s substitute writer Brad Plumer got the unenviable job of having to admit that the government’s infamous Cash-for-Clunkers stealth auto dealership bailout – in which people traded in still-useable cars in exchange for trade-in money for a new car – didn’t particularly stimulate the economy, didn’t improve US car manufacturer’s market share, and “increased average fuel economy in the United States by just 0.65 miles per gallon.” The trigger event for this admission was this Resources For the Future report that is fairly damning, in its somewhat dry and equation-laden way: of course, we on the Right were all yelling about this issue right from the start, but it’s still nice to see some math backing us up.

Still, Klein’s substitute doesn’t consider another economic factor: what happened as a result of taking used cars off of the market. You see, there’s a considerable demand for almost worn-out cars: poor people, young people, and/or urban minorities can maintain them well enough to be cost effective – if the price is low enough. And what happens, class, when demand remains the same but the supply decreases?

That’s right: prices go up.

It’s not unusual for price tags to be up $3,000 in some product segments in the last five years.

And the classic “beater” – a high-mileage, $1,500 used car that can handily take you around town on your errands – is fast becoming a thing of the past, according to some auction houses.

That article indicated that there had been a six percent increase in 2010 on used car prices overall. For Democratic legislators – and other people slow of brain – that increase represents a genuine loss of buying potential among poor, minority, and young adult voters. In other words, precisely the groups that Democrats were supposedly trying to help by ‘stimulating’ the economy. And, as noted above: all of this was pointed out at the time, of course.

To sum up: I know that the temptation is strong to look at the people most affected by this, note that they belong to groups that are widely considered to be disproportionately Democrat-leaning, mutter “Elections have consequences,” and leave it at that. In fact, that was my first reaction. But these folks are still American citizens, and it’s not actually fair to let the Democrats get away with making them poorer. So think of this as an opportunity to do some outreach and turn all of this into a teachable moment. After all, civic improvement is everyone’s responsibility…

Moe Lane (crosspost)


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There is a simple reason,

texas214 (Diary) Monday, November 7th at 10:40AM EDT (link)

Poor and minorities don’t give to presidential campaigns, unions do.

 

No Accident

lookingforward Monday, November 7th at 10:43AM EDT (link)

This is not an unintended consequence. Democrats don’t care if poor urban minorities have cars. In fact, they would prefer that they be forced to use government-subsidized public transit, thereby putting one more area of their life in the “dependent-on-government” category. This provides just one more reason to lock them into voting Democrat (“Republicans are going to cut funding for vital public transportation services”)

This is true.

jackdaniels11 Monday, November 7th at 12:06PM EDT (link)

Not only that, public transportation leaves us vulnerable to terrorism. Terrorists in Israel, Europe, and other places, including the United States, focus on trains and buses. Why? Because you can kill a lot of people with one bomb. Try throwing a grenade at a freeway with cars on it, even during rush hour. You might not kill anyone. But set off the same grenade in a train or a bus: you’ll kill at least a half dozen and leave many others bloodied and maimed for the pictures that you’ll need to promote whatever terrorist cause you’re sponsoring.

Public transportation is yet another pay phone solution in a smart phone economy. It benefits unionized government employees but leaves the most vulnerable in our society dependent on government and vulnerable to terrorists.

That's really not an issue.

Menlo (Diary) Monday, November 7th at 1:24PM EDT (link)

You can’t get large groups in single vehicles outside of the large densely-packed cities that already have such transportation. This has become even less of a risk since large cities have been losing population in recent years.

Far more scary is that work for these systems is in some cases starting to be outsourced to China. Who would have imagined part of New York City’s transit system would be made there?

Don’t give them any ideas on terrorism though or commuters could soon find themselves being subject to rapes and strip searches.

“The ultimate touchstone of constitutionality is the Constitution itself and not what we have said about it.” -Felix Frankfurter

 
 

No they don't.

Menlo (Diary) Monday, November 7th at 1:07PM EDT (link)

If they did, they would expand public transportation beyond the northeast and within smaller towns and suburbs. Removing access to private transportation cannot force people on to public transportation where it is not readily available.

“The ultimate touchstone of constitutionality is the Constitution itself and not what we have said about it.” -Felix Frankfurter

 
 

its fairly obvious...

pingpongping Monday, November 7th at 11:03AM EDT (link)

Democrats wants everybody to ditch gasoline fueled cars in favor of the electric or hybrid version….

Or bicycles or public transportation...

acat (Diary) Monday, November 7th at 11:06AM EDT (link)

Not to put too fine a point on it but .. serfs, tied to their particular patch of land… because they have no effective way to leave.

Mew

——
self-portrait

Caveat Suffragator

True words my friend...

anjinconsulting Monday, November 7th at 11:13AM EDT (link)

The ability to move and to speak freely is a pre-requisite for democracy.

Those who fail to learn history are doomed to repeat it. – George Santayana

No man has any more intrinsic right to offical station than another. Those who hold government jobs for a long time are apt to acquire a habit of looking with indifference upon the public interests, and of tolerating conduct from which an unpracticed man would revolt. – Andrew Jackson

Or maybe just "vote with my feet"

YnotNOW (Diary) Monday, November 7th at 7:48PM EDT (link)

Freedom of assembly is one of the “First” (as in First Ammendment) freedoms. And that includes freedom to move away and not assemble too :)

YnotNOW
If not me, who? If not now, when?

 
 
 
 

And that's not all!

barleycorn (Diary) Monday, November 7th at 12:06PM EDT (link)

There is another related effect of Cash for Clunkers. Not only did it take out a huge number of useable low cost vehicles it also removed from existence MILLIONS of perfectly good used parts.

The same people who need inexpensive “clunkers” also need inexpensive parts to keep them going. Thanks to Obama, low income Americans, the ones Democrats supposedly have to protect from those evil Republicans, have been hit by a double-whammy in the transportation budget.

And that keeps them poor (and voting D).

rickbull Monday, November 7th at 9:35PM EDT (link)

NT

WE ARE THE 53% (who actually pay taxes).

 
 

ImagineThat

notpropagandized Monday, November 7th at 12:10PM EDT (link)

Who could’ve thunk that the markets would be all screwed up by just a little government intervention here, a little government intervention there. It give a whole new meaning to the GISystem.

Rule by Technocrats

YnotNOW (Diary) Monday, November 7th at 7:49PM EDT (link)

never works. Just ask Milton Freedman.

YnotNOW
If not me, who? If not now, when?

 
 

Either the Dems are incredibly cruel and useless

veritaseequitas Monday, November 7th at 12:11PM EDT (link)

or incredibly obtuse and useless. Either way, they need to be in the minority beginning next year. We can keep just a few of them around to poke fun at and irritate.

This current bunch

kyle8 (Diary) Monday, November 7th at 12:23PM EDT (link)

are just spoiled brats who finally got their hands on the family business and now discover that all their pipe dreams were not grounded in reality. So they are running the business into the ground.

Obfuscation, denial, half truths, slogans, and the politics of division. That is all they have had for the last 40 years or so. They are so filled with their own spin that they actually began to believe it.

“Nothing works like freedom, Nothing succeeds like liberty”
Kyle

First generation starts the business, second generation builds it, third...

acat (Diary) Monday, November 7th at 12:26PM EDT (link)

drives it into the ground.

It’s a very common story among family businesses. There are seminars on what second-gen parents need to do to avoid this fate for their kids….

Mew

——
self-portrait

Caveat Suffragator

 
 
 

There's a statistic that I'd love to see on the C4C program

mbecker908 (Diary) Monday, November 7th at 12:26PM EDT (link)

that I can’t find anywhere. I’d love to know how many people traded a car that was paid for in on a car that they have payments for and defaulted on their new car loan.

I thought this program was a set up for huge problems for tons of people from the beginning, and I’m still pretty sure I was right, but I don’t have access to automotive financing numbers.

Change

Ask and ye shall receive:

rickbull Monday, November 7th at 9:41PM EDT (link)

cash 4 clunkgers repossesion rate

It’s all in what magic words you type into Google.

WE ARE THE 53% (who actually pay taxes).

 
 

Typical socialist agenda

jollygiantsd (Diary) Monday, November 7th at 12:28PM EDT (link)

What better way to remove loads of “polluting gas guzzlers” than to promote a program that takes millions of cars off the road… considering a majority of vehicles that were taken off were “traded” for vehicles with only had a 1-3 mpg improvement. Not to mention they had perfectly usable parts, yet they were forced to have their engines locked/seized up, and crushed.
If they would have just taken those little bits of the “CFC” out, those parts could have flooded the market and actually helped the economy, not hurt it. All they would have had to do was state the vehicle can be salvaged for parts, but not sold as a whole.
Instead in this second Depression, they keep finding ways to make it worse, not better.

If you look at the vehicles traded in, most of them were in the 5-10 year old range, still perfectly sound mechanically, and traded in by people that are a little tight on money but could still afford the car payment after the CFC trade in value (or willing to go further into debt). The target vehicles, those with 100,000 or more miles, those that get less than 15 mpg and typically sell for less than $3000 used, were the ones that are still on the road today. The people that drive them do so because even after that CFC trade in value, they still cannot afford payments since that program was only available for a brand new current model year car.

The One is following in the footsteps of FDR,

rickbull Monday, November 7th at 9:48PM EDT (link)

who also pulled a bunch of Keynesian crap trying to help the situation, but ultimately made it worse. In the end, it was Hitler and Hirohito that pulled us out of the Great Depression (by forcing us to go over there and kick their respective butts.)

Won’t it be ironic if Mad Mahmoud Ahmadumbass is the one who eventually pulls us out of this slump by forcing us to go over there and kick his respective butt?

WE ARE THE 53% (who actually pay taxes).

 
 

Just think how many people could look for work

Common_Cents (Diary) Monday, November 7th at 1:17PM EDT (link)

If they had options for a cheap used car? Nah, Obama decided cars are better sent to the crusher. Obama says ride your bikes.

“Fathom the hypocrisy of a Government
that requires every citizen to prove
they are insured…. but not everyone
must prove they are a citizen.”
-Ben Stein

“In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule.”[especially in DC] – Friedrich Nietzsche

Obama says camp out on Wall Street

YnotNOW (Diary) Monday, November 7th at 7:52PM EDT (link)

and complain until someone gives you handouts (and then still complain that some got more than you).

YnotNOW
If not me, who? If not now, when?