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View Full Version : Obama More handouts coming for Government Motors?


chiefsnorth
03-29-2011, 03:15 PM
Ready for another cash for clunkers program? It looks like General Motors is attempting to replace it's own consumer incentives with tax payer money. The car company, bailed out of bankruptcy in 2009 by the American tax payer, appears to be turning the government into an automatic rebate provider.

The Obama administration and their friends on Capitol Hill are floating around a proposal to change the $7500 tax credit for green vehicles. This change can be found not only in President Barack Obama's budget but also a bill proposed by Senator Debbie Stabenow, Michigan Democrat. The proposed Obama Budget, changes the existing $7,500 electric vehicle tax credit "into a rebate that will be available to all consumers immediately at the point of sale."Essentially, if one were to buy a $41,000 Chevy Volt, the buyer gets a $7,500 coupon, so the final price is $33,500.

Is the United States really prepared to deal with another tax payer paid for deal that will only benefit the now government-owned GM? After all, did Cash for Clunkers part one really work out for the tax payers and auto dealers? Washington, D.C. based organization Americans for Tax Reform didn't think so and wrote in late October of 2009:

"The program began on July 24th with a budget of $1 billion and by July 30th they were out of money. Giving people "free" money to buy cars is definitely popular. Congress then allocated another $2 billion that lasted almost until the end of August. Thatís right, $3 billion in under a month. The program didnít help the economy or auto industry. Despite a bump in the 3rd quarter to GDP and auto sales, consumer spending dropped 0.5% in September and the vehicle output bump was artificial and unsustainable, meaning it will drop off considerably in the next quarter as the market stabilizes to its real level. As Nick Gillespie and Veronique de Rugy pointed out today over at Reason, even the reported GDP bump is misleading, because is includes government spending. So if government spending increases it will increase the GDP, but that doesnít mean any more was produced."

There are also the unseen costs of this program. By encouraging people to junk older vehicles, they lowered the supply of cheap used cars. At least the wealthy got a handout to buy their brand new cars though right?.

http://www.washingtontimes.com/blog/watercooler/2011/mar/29/cash-clunkers-2-dumped-capitol-hill/

chiefsnorth
03-29-2011, 03:18 PM
Guess between the bailouts, the BHOA giving (their cronies at) GE a taxpayer-funded discount on half the Volts produced this year and this new handout, we the taxpayers are going to make sure that GM can continue to produce disappointing products like the Volt and still have their bottom line well padded.

MagicHef
03-29-2011, 03:20 PM
It would be applicable to the Nissan Leaf and Tesla Roadster too, right?

chiefsnorth
03-29-2011, 03:24 PM
It would be applicable to the Nissan Leaf and Tesla Roadster too, right?

I'll laugh when this handout is in fact available for people in the market for a $100,000 car like the Tesla Roadster.

Hell, in Obama's mind, making $100k in a year makes you one of the "rich", let alone spending that much just on a car.