Cars – no longer the stuff of dreams or for the poor? Or just a boon for Mass Transit?

I never thought, in my wildest dreams, that the President of the United States would ever be limiting my choices on the cars I could buy…GM – where cars used to be made that were the stuff of dreams.  In high school, I had a red ’67 Camaro with a 327 on which I had put a 450cfm Holley carb. I had a lot of fun with that car even at about 10 mpg (yeah, $0.75 / gallon, but I was only making $2.00 / hour as a stock clerk back then and Mom took 1/2 to "put away").

I still think about that car, but not as much of a car guy anymore (although I am on my third Saab – 1979 99, 1995 900, and now a 2005 9-5).  Especially when compared to Michael Hasenstab (via Instapundit):

I wanted to own a Corvette since I first saw one at age 11. I’m now 61 and still want a Corvette. Please, dear God, don’t let Government Motors screw up the Corvette until I finally get one. A 2009 Corvette ZR-1 in Blade Silver Metallic with the 638 horsepower LS9 engine, Brembo disc brakes and a six speed transmission.

Government Motors – selling the cars that Obama believes we should have.  He keeps yelping that GM’s problem is that it was not selling the eco/econo-boxes that sip gas oh so sparingly.  Yet, that was not the problem – any of the profit they were getting came from all the cars and trucks that people were buying – you know, those big ‘old SUVs, the redneck pickup trucks.  Heck, those just offend Obama’s sensibilities (oh, btw, what WAS the mileage on that Chrysler 300 he owned….and wants us to forget about?)!  After all, why should we be able to drive such big cars when the rest of the world could not – where’s the fairness in that (try their taxes on gas for starters)? 

Sorry, but the forth coming eco-boxes that are the size of a tuna-fish can with toddler bicycle training wheels are not going to excite anyone’s love affairs with cars (or young love affairs period.  As my old Aunt once said, upon looking into the cramped interior of the Camaro: "how do you go parking in that small space of a back seat?").  ONly the "greenies" will satiate their emotions by buying an electric 2 seater (and I’m not talking Tesla or Supermini either; think SMART car tin-can).

No, America has a love affair with cars in which Obama has chosen not to participate.  Nor have the D.C. bound legislators either (who, oddly enough, seem to get chauffered around town quite nattily in limos or decked out SUVs – "security", dontcha know!).  Thus, we end up with yet another abomination of a bill:

Cash for Clunkers!

Summary?  $3,500 or $4,500 depending on how much better mileage the new car gets.

Juan Paxety puts it well concerning Obama’s call:

And that’s why I’m calling on Congress to pass fleet modernization legislation that can provide a credit to consumers who turn in old cars and purchase cleaner, more fuel-efficient cars. (emphasis added)

Turn in old cars.  It’s long been a talking point of liberals and environmentalists that cars older than a given age should be removed from the highways.  The usual mantra goes “The government should buy all cars older than X and pay the owner $750.  Then the owner could go out and buy a newer, cleaner, more efficient car.” The advocates for this position either fail or refuse to understand that the owners will not be able to find a car to buy with their $750.  Basic economics.

President Obama used the words “turn in” not “trade in.”  He will give folks a credit – I suppose that means an income tax credit – for doing this.  This sounds like the used cars will go to the government and be removed from the market.  No more used cars.  You either buy an expensive putt-putt new car, or you go without. It appears that he’s set out to destroy the used car market. 

Yes folks, got an old car?  Does it have abysmal gas mileage?  Well then, you’re in luck!  If this bill passes, you’ll be able to get a tax credit on your next car as long as it gets better MPGs than the present one AND it gets crushed.  No, not a trade in – you’ll get a tax credit on April 15th so there’s no instant savings.  But hey – look at the nice thing you’re gonna do for the environment – save those whales seal pups frogs snail darter life forms by burning less gas and emitting less CO2 (which only is about 380 molecules per 1 million in our atmosphere)!

Problem is, there’s problems with this:

• Oh well, with Obama jacking up the CAFE standards (39 MPG ave by 2016), I’ll make it up in gas costs.  Oh, that standard will cost me $1,500 more for the car?  And look how much money I’ll save…oh sorry – you say cars are going to cost more?  In some cases, up to 38% more….gulp.
• So, I still get more MPG – oh gas prices will rise (higher taxes on oil companies, restricted drilling, more taxes at the pump)….well, I’m still going to do better, right?  I’ll mae a difference for the environment, right?
• Oh, I’ll need to buy TWO cars if I have 3 kids (no way 3 car seats are gonna fit in the newly downsized "mid-sized" car!)?
• Long distance car travel with toddlers to the next state to Grammy’s for Thanksgiving?  Not a freakin’ chance!
• Obama is going to buy a whole mess of these for the Feds.  Remember, the market responds to financial stimuli – it will make more Obamamobiles than really-what-regular-Americans-want-mobiles.
• States will follow suit, as the Fed ginormous purchase will make that class of car cheaper

Again, this is a "turn in" – think "crush" program.  No more car – just scrap metals and plastic.  Nothing for the resale market, as Juan points out. Ask yourself – who buys used cars? Not politicians.  Doesn’t seem to be the environmentalists either. 

The Law of Unintended Consequences kicks in – or does it?  It is the "just starting out crowd" like teenagers and students that will be harmed.  It is the working poor that cannot and will not be able to afford a new car that will get shafted. More unemployment as folks won’t be able to get to the after-school jobs or jobs period.

Actually, I think the effects will be intended:

• The UAW will get a short term payoff as new car sales rise – but only for a short while
• Can’t get to work – more dependency on Government for the basics of life
• Rural areas / fly over country will be hurt – vast spaces and Real Expensive Cars don’t fit well together for the average folk
• Migrations will start back into the cities – which tend to go Democrat. Urban planners will be able to see their wet dreams realized as living conditions, thanks to artificial stimulus by Government, will become higher density.
• Mass transit will be demanded – yet I’ve seen the ineffectiveness of it in rural areas.  Can you repeat after me?  Money-sucking taxes! <
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The biggest loss, however?  Freedom!  The freedom to go where one wants when one wants to at a relatively cheap price.

Thanks Obama. After all, you know what’s better for me than I do, right?

2010 is coming.  And 2012 after that.