The American Spectator

Reader Mail

(Page 2 of 4)

It has the automobile industry selling again; and when they're selling cars off the lots, the manufacturers have to make more to replace them. Manufacturing is the key to the economy and to economic recovery.

Banks are lending money again -- my guess is up to 40 or 50 billion dollars.

If, as they say, 250,000 cars have been junked and 250,000 more have been sold, then that's a lot of change.
-- A.C. Santore

Eric Peters does a nice job with some unforeseen consequences of the policy.

How about some more? I wonder what will happen to steel scrap prices? My guess is that they will go down. There are people who make their living by hauling away the junker that someone's neighbor has had up on blocks for the past year and a half. The economic incentive for providing this eco-friendly service may evaporate, as the clunkers displace the junkers in the scrap yards. Note also the further downward pressure on housing prices in the very neighborhoods that can least afford it.

There is a single mother somewhere who must buy a car or lose her job. It seems her employer can't stay in business in her neighborhood any longer. What will happen to prices as this unfortunate woman enters the used car market? A clunker would suffice, but she may not be able to find one at any price. If she has to use public transportation, she will have to pay for 3 more hours of child care each day.

What about the charities that raise funds by receiving donations of used cars? I doubt the cars that they receive would have much trade-in value -- until cash for clunkers came along. I suspect these charitable fund-raising activities will dry up, and the clients that would have been served will be harmed. Government's cash for clunkers, will crowd out organizations like "Democracy Now!," "Develop Africa," and "Free Speech TV." President Obama, say it ain't so!

Peters notes that, "The government is basically paying people to buy new cars. What happens when the subsidies dry up?"

Unfortunately, the subsidy is probably pushing the selling price up (think of government
efforts to ease the college tuition burden). Furthermore, a mad rush is on by the new car buying public to cash in on the subsidy, to get 'em while they're hot, so to speak. This psychology of the crowd will also push prices up. So don't be shocked if the after-subsidy net price from dealer to consumer is about the same as it was during the current mania.

Women, minorities and children will once again be hit the hardest.
-- Dan Martin
Pittsburgh

SOMETHING'S DEAD FISHY
Re: Robert M. Goldberg 's Questions I Never Asked Obama:

Well put!

I note that a few days ago, Barney Frank let the cat out of the bag when he said that this plan will lead directly to a single payer system. No such system anywhere has failed to ration care to keep costs down.

Worse -- what members of Congress have said that seniors should get used to not getting all the care they want?

Speaker Pelosi has complained that medical insurers are exempt from antitrust law. Yes they are! And who granted them that exemption? Could it be the Congress where the bill was written? And who could just as easily and quickly end their exemption if it's really a problem? But of course, that would endanger some campaign contributions, would it not? Do I smell dead fish?