Tuesday, September 22, 2009

Cash For Clunkers Delivers On Predicted Unintended Consequences

Although it increased temporary demand in the short term, concerns for the C4C plan arose as early or even before the program was ended.
But, the government offered free money to entice people to buy a new car. What could go wrong?

A lot actually.

By artificially increasing the demand now, this dramatically decreased future demand. Another unfortunate consequence is based on government inefficiencies. There was such a large influx of requests for the government money, that they could not keep up. This forced dealers to sell cars at a loss, but promised them money after. This would not be a problem if the demand was sustained. Because the demand has dropped off, the dealers still have that loss, but now are not selling enough cars at full price to stay afloat.

On top of that the timing for C4C was picked poorly. Legislators were so concerned with getting a higher approval rating that they did not take the timing of the plan into account either. The program was implemented in July, and was stopped in late August. The new model year begins typically in September. Unfortunately the increase in demand was right before the new model year began when prices and profits would be higher.

Cash for Clunkers turned out to be a short term popularity boost for politicians, but it came with a long term cost for Auto manufactures and dealers.

Boo-Hoo EU

The European Union has turned their Enviro-guns on the United States effectively as THE reason they believe that Global Warming has not been controlled.
“So far, we thought the basic problem was the Chinese and the Indians. But now I think the problem appears to lie most clearly with the US,” a European Commission official said.
Forget the fact that the United States has only increased their emissions by 0.7% while China has increased (and will continue to increase their emissions) by 2.6% and are not required by the Kyoto Treaty to reduce their emissions AT ALL...

The United States is THE cause for Global Warming!

China is projected to increase their emissions annually and by 2030 are projected to account for 34% of global carbon emissions. Right now they are at 21.5%. Based on the projection that the global CO2 emissions in 2030 will be 40.1 Billion Tons/yr, that is an increase from 6.1 Billion tons per year to 11.6 Billion Tons per year in China ALONE. That is a 90% increase over 25 years. The United States is projected to increase annually at 0.5% per year. In total that gives the United States a total increase in carbon emissions of 13.3% over the next 25 years, or 6.5 Billion Tons in 2030.

Sounds like the E.U. needs to point those guns someplace else.

Saturday, September 19, 2009


Major kudos to the Washington Huskies for putting the always over-rated USC Trojans in their place.

And the Cardinals beat the suckies again (10-5 for season)! If only Tennessee had upset Florida!