These days, it is nearly impossible to avoid the financial propaganda that is constantly spinning things to the positive. One thing I never see mentioned is the fact that a lot of our “recovery” stands only to prove that people will take free money and spend it.
We have a rather expensive proof of the obvious in play here.
We’ve got $4,500 Cash For Clunkers vouchers, $8,000 tax credits for “first time” homebuyers, an additional $10,000 new home purchase kicker in CA, and more than a few additional quiet government subsidies.
Clunker Program Spurred August Sales
DETROIT — Auto sales perked up in August because of cash for clunkers, but both General Motors and Chrysler struggled after emerging from bankruptcy protection.
Total industry sales in the United States increased 1 percent during the month compared with August 2008, and rose 26 percent compared with July.
Much of the improvement was attributed to the government’s popular cash-for-clunkers program that gave consumers vouchers worth up to $4,500 if they traded in an older, gas-guzzling model.
But even as most automakers posted gains in August, sales at G.M. dropped 20 percent and Chrysler’s sales fell 15 percent.
Ford posted a 17 percent gain in sales in August, partly because its Focus compact car was one of the top-sellers in the clunker program.
Comments: The NYT does a good job of leaving me confused about the overall clunker program results by focusing only on the US car manufacturers. Okay, it was a success, I guess, but who really benefited? Who ‘won’ and who ‘lost,’ here?
by former_user