Auto Sales Back in the Doldrums

This chart is a great way to illustrate how temporary tax breaks or government handouts can't do anything to change the underlying reality. The Cash for Clunkers program boosted auto sales for awhile, but as soon as the program expired, sales reverted to trend. Tax rebates do the same thing. Since they don't change anyone's incentives, they only boost things temporarily.

How long will it take for the political class to learn this simple lesson? Better yet, how long will it take taxpayers to figure out that these types of programs are just government theft designed to buy votes?

Comments

[a. palmer jr.]

If you're a person of limited means and can't buy a new car every year, you'd probably be crazy to buy one now. In the near future the automobile will be changed drastically and if you're going to be stuck with what you buy, wait and get something new age. The cars we have now have basically the same drive train that cars had 50 years ago and I believe that's about to change.

2009 Oct 02 09:45 AM

[cynnatalie2000]

The c4c was particularly bad in that it was one more effort to subsidize the UAW.

The UAW has already destroyed Detroit to a point of no return so that policies should protect the rest of the nation from the UAW rather than attempt to advance the UAW.

2009 Oct 02 03:02 PM