Cash for clunkers, ditch the rust wagon and dash for glitz
I don’t pretend to be an economist, and nor a politician. But this cash for clunkers program where the government subsidizes you buying a new car, just doesn’t make sense to me. I mean, I know that they are trying to boost car sales and keep the car industry going, so that manufacturing and sales continue and people keep their jobs. Sure that makes sense to me. And to consumers it looks like good deal that you wouldn’t want to miss.
But isn’t this just another way of propping up an inefficient industry with money that we don’t have? Aren’t we just getting deeper and deeper into trouble? Surely the money has to come from somewhere, will they start taxing us more now?
I realize that if the government does nothing, then the GDP will shrink further, people will lose jobs, less will be spent and the whole thing becomes a vicious circle. So they try and stimulate the economy by pouring money in and making credit available, making it attractive to buyers and keeping companies afloat. But shouldn’t these companies also try and improve and innovate to get themselves out of trouble.
Are we really in a free market still? Or is it owned and controlled by government? I just don’t get it anymore?