Video: Ron Paul – “Cash For Clunkers Hurts the Poor”

i dont need to do homework to understand subsidizing an industry to create artificial demand DIRECTLY hurts competing private industries playing by the rules.

And the taxpayer.

you could play that game with any industry. lets bail out the flat screen companies which would help out satellite and cable providers. or silicon chip makers. or sports bars. or whatever.

see how this really helps everyone else? right.


wrong. it doesnt let the market reward the companies that deserve it nor allow it to punish those that are inefficient.

everyone involved in this artificial market pays for it in the end.

 

it doesnt matter which companies it benefits. thats not the point of government, to serve these comapnies.

and anyways, for x dollars given to the car companies, that is x dollars taken from taxpayers. see how nothing is gained? the money doesnt come from jupiter.

if people want o buy cars, they will. we shouldnt force them. i dont want to buy you a car. but as a taxpayer i am buying lots of cars i dont want. how does that help me? i wanted to stimulate some other part of the economy with that money.

 

what concerns me is the people who are trading in cars.

1. people are taking cars that don't even work anymore and trading them in. so that means now they have an extra bill they probably cannot afford.

2. what is happening to all these junk cars? are they being recycled? or are the car dealers fixing them and reselling them?

i understand it helps some companies out, but for the most part it helps out the unions, who are the ones who got Obama elected, well them and the Bush administration, and Sarah Palin, and John McCain, oh and the non Fox media.

 

All of the cars traded in for the cash for clunkers program are destroyed...regardless of what condition they are in. The dealers are required by law to pour a chemical solution into the engine and run it until it doesn't run any more.

 

they are rendered useless and taken out of circulation. so not only is the pool of cheap cars reduced, ie less choice for the poorer folk-

the relatively poorer dudes who deal in used parts (junkyards, small dealers etc) also suffer directly.

so whenever govt claims to give free money to help the little guy, its always a guise for something else. just like here. not only does it not help him it hurts him much moreso than the govt doing absolutely nothing.

and like you said, it encourages people to buy things they normally wouldnt--just like when the mtg companies were handing out money to those who could never pay it back.

 

actually the junk yards are the ones receiving these cars and are being compensated greatly for the metal that is getting recycled, the audio systems, the fabrics, the rubber, etc. Also, the residual effect has been an influx of nice trades that don't qualify that are being sold to those lower end used car lots. Your responses so far have not been fully researched.

 

I'm confused. How does a government "incentive" program cause an "influx" of nice trades that don't qualify for the "incentive"? I think that is actually called "regular business".

 

Cash for Clunkers Hurts Salvage Yards | KSBI-TV | News

sorry the hundreds of articles such as this led me to think the actual guy getting phucked was aware what was happening to his business. i guess i was really going out on a limb.

 

somewhat correct. There are those that have cars that don't qualify for the progrm, eg 91 Honda Civic, but some misinformed consumers think they might. They come to the dealerships and end up purchasing something anyway. That is the residual.

 

are you a car salesman/dealer?