A post by Maynard

Okay, boys and girls, let’s test your knowledge of basic economics.

Imagine there’s an apple market where everyone goes to buy apples. And then a stranger appears and buys a significant portion of the apples. What happens at the marketplace?

If you answered that the ordinary buyers have to scramble for apples, and they would pay a higher price, then you’re a lot smarter than Congress and the President.

Substitute “cheap used cars” for “apples” and you’ve got the aftermath of “Cars for Clunkers”:

In her search for a cheap, used minivan for her and her husband, Krissy Dieroff has visited seven dealerships across Berks and Schuylkill counties in the last week, but to no avail.

“There’s not much to pick from, and the ones we do find are overpriced,” said Dieroff of Auburn, Schuylkill County, while browsing the lot of a city dealership on Monday.

Dieroff blames the shortage of inexpensive used cars on the federal cash-for-clunkers program, in which almost 700,000 used vehicles were traded in for newer, more fuel-efficient vehicles, and then scrapped.

Some local used car dealers specializing in vehicles priced $5,000 and under agreed that there are fewer inexpensive vehicles available.

The trend is occurring nationally as well.

The Manheim Used Vehicle Value Index reported that prices reached record highs in September. The consulting firm that publishes the index blamed low inventories.

That’s bad news in Berks, where many shoppers seek inexpensive, used vehicles, especially during difficult economic times, said George Tabakelis, general manager of Perry Auto Service & Sales on Route 61 in Perry Township.

“Customers used to be able to find a good car for their son or daughter to take to college for $2,000 or $3,000, but now that same car may cost $5,000,” Tabakelis said. “It’s sad.”

Bad news for people seeking cheap used cars. Bad news for the national debt. But good news for Japanese automakers. More importantly, good news for some UAW workers and a few new car dealers. And the momentary uptick in auto sales generates a useful headline.

Good news for foreigners and politically connected cronies. Bad news for struggling citizens and taxpayers. There’s your “hope and change”.

Bonus question: What’s your reward for understanding the foregoing?

Answer: The White House and Congressional leadership publicly proclaim you a racist, greedy, illicitly rich, bitter, dangerous, racist, swastika-carrying paid shill for big corporations. Because those are the only possible reasons for anyone to voice objection to the enlightened programs being cooked up in Washington. And did I mention you’re a racist?

This section is for comments from tammybruce.com's community of registered readers. Please don't assume that Tammy agrees with or endorses any particular comment just because she lets it stand.
11 Comments | Leave a comment
  1. Lilly says:

    I am a Kiwi (New Zealander) but the words of your Ab Lincoln have always been something to live by. I think it is time that the American people and especially your current government remembered them before they totally tear down the USA>

    “You cannot help the poor by destroying the rich. You cannot strengthen the weak by weakening the strong. You cannot bring about prosperity by discouraging thrift. You cannot lift the wage earner up by pulling the wage payer down. You cannot further the brotherhood of man by inciting class hatred. You cannot build character and courage by taking away people’s initiative and independence. You cannot help people permanently by doing for them, what they could and should do for themselves.” Abraham Lincoln
    You cannot further the brotherhood of man by inciting class/race hatred.

  2. wesen says:

    I trade in my Chevy work van every three years but this year the Chevy dealer looked at me and said “sell it on Craig’s list” as he presumed I would return with cash for a new Goobermint Motors Clunker. I’ll tell you, as mch as I liked the vehicle I will never own a Chevy again. Nissan is coming out with a van next year. I have to drive by and pretend to offer him a ride.

  3. mrcannon says:

    I’m a racist? Well, thank the heavens that we have the Messiah-In-Chief around to tell me these things. I never would have figured that out all by myself. Guess I should have read Saul Alinsky instead of the Bible. Oh, what could and might have been, but at least I have a gun to cling to.

  4. CO2aintpoison says:

    Lilly, well put. Sadly our current administration does not care one bit about that perspective because he knows he is doing it all on purpose. Their whole ideology is to drive ALL of us to the government for ALL of our needs. They want us completely dependent on them. None of what they are doing, despite the words dripping from their lying mouths, are to “help” anyone. Everything of what they are doing is to intentionally cripple us and to cause us to come to them on bended knee.

    Well, I say SCREW THAT! That is why part of the genious is also contained in the Declaration of Independence which requires the citizens to take back an overreaching government. And that is what we intend to do, starting with these “off year” elections in a couple weeks.

  5. trevy says:

    Well, we elected someone who hadn’t even run a lemonade stand. And who is incapable of seeing beyond what he WANTS to happen.

    Hurry up 2012!

  6. CatB1 says:

    Funny I said when they started this that it was going to make my “used” vehicles worth more….I was called crazy….look what has happened. Again the liberals go out to “help the people” and end up making a bad situation worse! Now the poor working stiffs are going to be out of luck on a cheap ride…but others got a “bailout” when they got a new vehicle. Pay off to unions and a Government in the car industry and this is what you get.

    BTW: I have a friend who works at GM ,,, he was happy when the government stepped in. Now not so much…you see he worked for SATURN!

  7. MRFIXIT says:

    To add insult to injury, IRS and the state of California consider the $4500 payment to be income to you. So after tax in CA is about $2400 at max tax. You could get that much as a straight discount without much effort, plus your trade. Oddly, even though the dealer actually recieves the payment directly from the government, it is not income to him. What a deal. Not only is the market deprived of good used cars, the scrap is being sold overseas, mostly to China. They won’t even let them part them out, to keep like models running with the used parts. Another shameful scam, brought to you by inept politicians who think that a few hundred of them can out think a couple hundred million of us.

  8. CatB1 says:

    I just returned from a protest at the new Solar Plant in Florida where Obama came to announce his next BIG project…putting in a new power grid so they can control your usage!…BTW the solar plant cost 150 MILLION Dollars and provides power for just 3,000 homes.

    Most of us were anti-Obama spending conservatives but some Pro-Obama people came over and tried to “make trouble” they were yelling and carrying on…we just ignored them for the most part…but one organizer went over when the police went to talk to them.

    He asked them why they support Obama….stumped one finally said Obama “bought” her a car…”you know cash for clunkers, baby” she said. I wonder if Obama will make her payments too….or if she loses it will she miss being able to get a “cheap” clunker!

  9. aardvark says:

    I am just waiting till I get hit for a “Clunker Bailout Program.” You know — to bail out the people who couldn’t really afford the new car payments and should have kept right on driving their older, working used cars when they fall behind on payments.

    Meanwhile, I keep right on driving my paid-for 2001 Toyota minivan and DH drives his paid-for 1999 Toyota 4 Runner (and CHOOSES to ride his bike to work sometimes to stay in shape). Oh crud, did anyone notice we exercised our freedom of CHOICE and picked cars we thought were reliable long term, as well as safe, and big enough for the large family we CHOSE to have – plus raise AND homeschool sans any hand-outs?

    Darn all that liberty stuff. ..gotta find a way to stop it…Hmmm, handing out “freebies” might work…

  10. Halloween Links Guaranteed to Frighten You…

    Photo is Saul Alinsky. His ghost walks. Boo!
    Thomas Sowell’s Dismantling America, Part 1 and Part 2
    Soros and Gore among WH visitors
    Coyote on the Dem tax/health bill:

    The implications for my business are staggering.  I have already …

  11. Thoughts On A Sunday…

    We knew it had to come to an end, but Beezlebub was devastated by the fact that his regular employment at the farm has ended for the year. It left him a bit directionless as he really didn’t know……

You must be logged in to post a comment.