Seriously, is that Crony Capitalism crash of "Cash for Clunkers" returning? Ford wants it! - Granite Grok

Seriously, is that Crony Capitalism crash of “Cash for Clunkers” returning? Ford wants it!

Cash for Clunkers

Oy vey is mir! It was crapitalistic back during the Great Recession and it will be just as bad if President Trump does something similar. The result last time with the first Cash for Clunkers?

People who either were all set to buy a new car or on the side of the cusp to do so were financed to the tune of about $4,500 of tax credits – and their trade got crushed. There were two main results:

  • People got paid for what they were going to do anyways – and determined later that this program didn’t really move anyone’s “buy it now needle”
  • It made used cars more expensive for a few years and put what remained out of the reach of the poor.

Such a deal!  And now, Ford is wanting to benefit itself again by lobbying Government (e.g., rent-seeking) (reformatted, emphasis mine):

Ford expects talks with U.S. on cash for clunkers-like stimulus

Ford Motor Co. would like the U.S. government to sponsor an automotive stimulus program to help the industry get back on its feet after the coronavirus crisis abates. Mark LaNeve, Ford’s vice president of U.S. marketing, sales and service

We think some level of stimulus somewhere on the other side of this would help not only the auto industry and our dealers, which are a huge part of our overall economy, but will help the customers as well. We’re in discussions about what would be the most appropriate.”

Those discussions are internal at Ford for now, but are eventually expected to involve the government, LaNeve said. One model being considered is the government’s “cash for clunkers” program of more than a decade ago, which helped stimulate auto sales following the global financial crisis by encouraging drivers to turn in older cars in exchange for money toward buying new ones.

Cash for clunkers was very effective at that time. It would be nice to think we could have something equally as effective for 2020 when we get out of this because it was a great program.”

Not if you were a taxpayer at the time that was NOT thinking about buying a new car. Not if you were poor and didn’t have the ability to buy a new car.

Sorry, the best stimulus is not to help people sell stuff but to get workers back to work and get dollars back into their pockets.  Then they’ll start buying stuff again with being prodded (or “nudged” as Cass Sunstein, Obama’s Sr. Advisor, was always arguing for). The whole idea that a Proper Role of Government is to change your behavior (other than don’t do crimes) is WAY beyond the initial vision for this country.

Then the Socialist Progressives showed up believing in a very Activist Government and that THEY were/ARE the ones smart enough to pull it off. Yeah, that hasn’t worked out so far for most of us by throwing our Founders under the Progressive bulldozer. But they keep trying new and newer ways to implement FDR’s repudiation of the Founders by trying to get Government to do more FOR its subjects instead of staying out of our way.  I think I’m digressing again – but “they keep pulling me back in”!

So, why is this even a “thing”? Oh:

Ford reported a 12% drop in first-quarter U.S. sales on Thursday. Automakers sold cars and light trucks in March at the slowest pace since 2010, and analysts expect calamitous results for April.

Ask not what you can do for your country, demand what your country is going to do for you?

Look, TMEW and I are starting the process of looking for either a new or gently used