Monday, November 07, 2011

Who can afford a a Chevy Volt anyway?

One of my complaints about the Cash for Clunkers program was that it represented a wealth transfer from poorer to wealthier. The only people who benefited from the program were people who, with the $4500 clunker allowance, could afford a new car. It's unlikely that the group of people who could afford a new car with the credit but could not have afforded a new car without it is a large group. Furthermore, the program removed thousands of functioning used cars from the highways and, more importantly, the used car marketplace, raising prices for anyone that needed one. It doesn't take a rocket scientist to figure out that reducing the price of new cars while raising the cost of used ones is not a good-for-the-working-poor kind of exchange.

Which leads to the quote of the day (topic: tax credits for purchase of electric vehicle Chevy Volts), which is politically incorrect in all the right ways...
Tax credits like this merely take from those too poor to afford a coal fired white elephant and give to those that already live in mansions.

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