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?