----“Give a man a fish, he’ll eat for a day.
Teach a man (or woman) to fish, he’ll (she’ll) eat for a lifetime.”
A great friend taught me about the importance of such parenthesis… I switched veterinarians after the Doc said about our girl, Fozzy,“He’ll be alright. Just bring him back next month for his…….”
Cash for the Clunks: Ok then, I did take Microeconomics in college, and obviously received a different training. In my world, anything that sells out in 4 days is/was mispriced! Take the government’s own celebration POPCORN!—that the program will clean our air, removing these 184,000 some gas guzzlers off the road. That it will create much needed demand in the struggling automobile industry from manufactures to suppliers. Ah, yes. But maybe, just maybe, if you had modeled it correctly, performed just a little preliminary testing, “just a little bit of the ma-mincy”, you would have figured out that $2,250 (instead of $4500) might sell out in 3 weeks (instead of 4 days), and take twice the gas guzzlers off the road. Further, foreign car companies (as they sold the lion’s share of the new “environmentally friendly” cars) might have sold twice as many cars as they did. Take a look at the table.
Top 10 New Vehicles Purchased (under the program)
Here is the data sent to us by the NHTSA on August 5, 2009 at 3:30 pm.
1. Toyota Corolla
2. Ford Focus FWD
3. Honda Civic
4. Toyota Prius
5. Toyota Camry
6. Hyundai Elantra
7. Ford Escape FWD
8. Dodge Caliber
9. Honda Fit
10. Chevrolet Cobalt
So now, as you pay for your countrymen’s mortgage, you may treat them to a new foreign car, one that will help clean our air…aaaaahhhh, give a man a fish, yes, I am quite sure that these 184,000 cars are simply cars that will not be sold next month or next year, for they were sold now. Nothing structural has changed—no one has learned to fish in any of this. No one has even learned to put a worm on a hook. This was simply needling the US economy, and because it makes no sense to any economist with a brain, the program was championed on the softer side… good for the environment! Ever popular with applicants, why wouldn’t it be, though new rules, an Obama favorite, has confused dealers and consumers in the process. Just before the people reach maximum frustration, wise Congress diverted another 2 Billion dollars from the renewable energies budget to expand, yes expand, the program, because, of course, it’s was such a success. That’s funny, because when asked what the long-term drivers of growth and employment in this country might be (everyone wants to know…I still don’t know), the current administration routinely cites, what, what was that, wasn’t that the program you trimmed to pay for, yes, renewable energy, the exact department whose budget targeted for this one-time pop in sales. Read all that again. So now we get a good sense of what’s going on here. I sure am going to take a nice deep drag of clean air today and smile, “Clunkerless.” But the smile will soon collapse as I picture the short-sidedness, the myopic behavior, the selfish desire to become a career politician that has driven should-be leaders to cartoons. But they are leading us. That’s the law. Or what’s become of it.