Interesting article about new car glut, at Zero Hedge. Apparently, millions of new cars are being produced, but because (1) few people are buying and (2) there is an estimated ten billion serviceable cars in the world (yes, that’s 1.4 cars per person), these shiny new vehicles are just parked and left to die.
Which any car will do, after sitting for a while. Just try starting one after a few months in storage, especially if it sits in the open!
I have to wonder if the Cash for Clunkers program (aka Obamacare for Cars) had been designed with this in mind. First you make people get rid of older but perfectly serviceable models by offering them cash incentives, which certain other people, also known as taxpayers, have to pay for. Then you destroy these perfectly serviceable older cars instead of recycling them. This creates an ecological nightmare and yet another fiscal sinkhole, and drives up the cost of used cars. Then people will really have little choice but to buy a nice, shiny, overpriced new car with all kinds of expensive features that no one needs. Except that, after several hundred years of the national socialist Obama economy (okay, okay, it’s not several hundred years, but it feels like it), few people have that kind of money. So the cars are parked, and they die.
Oh, hey, here’s an idea! Why not, instead of giving people a few bucks to get rid of their old cars, you simply give them one of these new ones?
Perish the thought…