I worked for a family that bought and sold wholesale cars. Bottom of the barrel stuff they got theyd end up fixing up and selling for ridiculous prices, not because they're being greedy but because cash for clunkers made all used cars still around overly expensive!!! fck all these progressives that want to destroy our country.
TOUGH MAN RANDY SAVAGE, mine to, think of all the perfectly good cars that could’ve lasted another 10-20 yrs instead they threw them in the trash. Created more carbon, more pollutants in the air, & created a bigger pain in my A$$/climate change emissions SH!T.
Broken window fallacy. A baker shows up to the bakery and finds a brick thrown through his window. A passerby sees his distress and explains that the smashed window is actually better for societey. He will buy new glass and the glass guy will buy new clothes with the money, and the tailor will buy bread at the bakery. The baker points out that he was going to buy new clothes too but is now stuck replacing a window. In effect, societey has not gained wealth, it has lost it to the tune of the value of 1 window.
Slavery is good for society. Baker needs to pull his bootstraps and work a double shift. But he makes surplus bread so the price of bread falls and then the best he can afford to buy is the glassmaker's seconds at a thift store. Unless they shred those to stimulate so baker has to work double for even longer to save up. Just in time for another brick stimulus.
It also almost killed my automotive service company. Take the money out of your local economy and give it to big business. Isn't that the American way?
Are you stupid, obviously you destroy an older car an 02 civic for example, smaller and lighter than modern cars, get high 30s low 40 mpg. And replace it with a new one, say a good ole american charger, and get high 10s low 20, but less pollution because more cats built in, obviously its better for the enviorment. At worst its net neutral, you replace a car with a car that cant hurt. But the new one cost more, which means its more economical and will generate revenue. Its also larger and heavier with more horsepower therefore safer. Not only that but, that old car was old, you cant move america foward with old things especially cars, imagine how much faster we could move forward with newer cars? Have you ever driven an audi, porchse or bmw? Those cars are super fast, thats how we move america forward.
@@devin19222 50% of the pollution done by a car over its lifetime happens before it's sold to you. You gotta melt steel, make rubber for tires, get the furniture, ship the parts halfway across the world to assemble it all together. It is actually *worse* to buy a new, economical car than it is to drive an old, less economical car.
@@ТомасАндерсон-в1е Don't forget it puts people into more debt buy a new car instead of keeping their older paid off one. Feeds off the impulse of people to have new items and living outside their means.
Devin Pfennig who cares about the environment. Commiefornia evidently, due to their recent ban on gas cars after a certain year. Yep, I’m going to driving my 94 850CSi with no cat way past that date.
So let me guess...you grew up and now you recognize the folly of your youth? We need a little bit of that right now with all the idiots voting for Bernie Sanders.
Looseel Scott Up until I was in my second year of college, I was incredibly left leaning. Was always told that conservatives are evil ignorant pigs who vote in corrupt politicians. I believed it for the longest time. Then I started questioning things after seeing some crazy diversity initiatives and seeing that video of Big Red. After listening to both sides with an open mind, I can now say that I’ve been a staunch conservative for the past five years.
That was the point. They wanted poor people to become dependant on the bank and politicians for their livelihood in order to secure future votes. The poor lost their cheap affordable and functional vehicles and got an unpaid car loan on their credit and no way to dig themselves out without government assistance.
This BS program didnt even help really poor people get a new car. It gave 3 or 4 thousand towards a new car, and it had to be brand new. So when you figure how much a brand new car costs, really poor people didnt get shit from this program. Thanks for nothin, Obuma!
you destroy cars that are not running and would not be sold. i think you are missing the entire fucking point. and meanwhole you give people money to spend. maybe on cars, maybe not. our economy is based on spending. most of the cars taken in by the program were junk cars that were never going to run. and yes, the4 program ran out of money. THAT IS WHAT IT WAS SUPPOSED TO DO.
"It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong". -- Thomas Sowell
@@michaelvol8922 It's almost as if money isn't the answer to all of the problems. What they need are materials and people who are trained to do the work needed to rebuild. Just throwing money at the problem doesn't make the problem go away.
Dog Mat here's the kicker,the metal industry was overstocked and the metal prices literally plummeted to 50 USD a ton a all time low ever in which before they paying 200 USD a ton you cant see a conspiracy there..lol
Don’t forget the banksters! Nearly ALL of Obama’s cabinet were ex Wall Street or bankers. All of the high interest auto loans made from cash for clunkers to people who should never have bought a brand new car with debt - it rewarded those banker guys too!
@@FreedomInc look it up. Sad but true. Thats why the car manufacturers went overseas & steel cities collapsed. Places that were booming are now ghettos. Also, if you have a vehicle made after the 80's, go tap on it. Feels more like aluminum than steel. Made in China trademark.
Yeahhh... no. I'm sorry, see this myth everywhere. If you actually think any car from the 60s, 70s, 80s, 90s, or even 2000s is better than what you drive today you are looking at them thru very, very thick rose colored glasses. Cars did NOT last 150 or 200K miles on average like they can today. People forget a 60s or 70s car was considered nothing but junk at 80-100K miles. Hell, I put 110K on a 2008 Toyota over a period of 7 years... the only thing I ever replaced on it (other than oil change/filters) was a single rear tailight. Good luck doing that on anything made pre 1995~. And on top of that, a freaking Accord V6 turning mid 13s would outrun 90 percent of the 60s "muscle" cars, not to mention almost everything from the 70s, 80s, and 90s. Not to mention it would be FAR safer, stop faster, stop more times in a row without brake fade (drum brakes anybody?) and handle far better, not to mention all the safety advantages of traction control, stability control, advanced ABS, you name it. I'm a lover of 60s muscle, and a hot rodder at heart. But todays cars are the fastest, best handling, safest, most reliable, nicest interior, and best equipped cars ever made. The only downside is the cost of a new car.
_"if your car was running, why would you turn it in?"_ Because consumerism? People are programmed to like shiny new toys. Dems exploited that...and even gave it a veneer of "eco-virtue" to falsely assuage anyone's conscience that might be troubling them about being "wasteful."
_"Cars did NOT last 150 or 200K miles on average like they can today. People forget a 60s or 70s car was considered nothing but junk at 80-100K miles. Hell, I put 110K on a 2008 Toyota over a period of 7 years... the only thing I ever replaced on it (other than oil change/filters) was a single rear tailight. Good luck doing that on anything made pre 1995~."_ Uh, my 1994 F150 has 212,000 miles on it. Technologically, the engine was a "clean sheet of paper" in *1963.* Very little has broken...and if it ever does, the mechanical simplicity and copious underhood room ensures it can be cheaply and easily fixed. A seven-year old car is barely an adolescent...come back after a couple of decades and let me know how your car is faring! Again, while it's technically a 1994, everything on it (other than the EFI) is "legacy." Body-on-frame. The 300-C.I. inline-6 (with METAL TIMING GEARS...don't you have a rubber band for your cams?) (And from the way you talk, haven't you discarded your "Toy" already? For all you know, it's no longer on the road! Meaning I "beat" your rice bruner by 100k and 17 years!)
Another problem, the loss of used spare parts. Remember the rules of the program said the whole car needed to be destroyed. They even had to put a liquid in the engines to seize them. What a great program!
Beat me to it. Oh, you got sideswiped and need a replacement door? Now you're going to spend much more time driving around with a dented door while the auto salvage places look for your year and model.
@@r5t6y7u8 I understand the fact that there would be ACRES ON ACRES of used cars, stacked up together...but for being the party of the ''environement'' ect they do a shit job at preserving precious metals ect. Or things which take a bunch of manufacturing. Aka most things in a car. Body panels, engines, plastics rubbers cloth metal lines nuts bolts. It would of been better to just do what some scrap yards do and fix up the cars which can be fixed reasonably cheap, sell them and then the rest, go out for parts to fix peoples cars. Then again it isn't the ''stimulus'' that the auto industry ''needed''. I understand why it was done, but it was not good at all.
Yep, I didn't fall for their bulls**t. But now instead of being able to buy the part you need for your car (from a junkyard), you have to buy the entire door (instead of just the door latch). F'ing dumba**es!!! 🙄👎
Well.... I mostly blame Cox Enterprises for the increased price of used cars. Cox, the owner of Autotrader purchased Kelley Blue Book in 2010. Cox has a vested interest in inflating the price of used cars, with the acquisition of KBB they can do just that. A lot of people use Kelley Blue Book to price their vehicles and they know it.
@@rodx5571 ask them. Everything marxist leftists say is for our own good until you learn that leftists want about 200 million people here in America, to just die so their socialist utopia complete with all renewable energy resourses can have a slim chance of working. And if it doesn't, they'll just kill off more people. That really is their final solution to the "human problem" here on earth. Just visit their web pages, they all to a person want the earth's population to shrink.
@@Miatacrosser . ...a nd where is that great protector of the truth? The .media, bought and paid for by the liberal elites who want to buy this country and turn us all into slaves .
Good intentions...the only good it did was raise prices, raise taxes and push poor people out of the market. The only people who benefited were car companies (new and used). They got huge tax deals from the Gov too. Car lobbyists got money pushed to the car industry that the politicians have huge investment stakes in...
On a funny note, the people that participated in that program had to claim that rebate as income and got taxed on it. That program messed up used car prices for two years.
@@frankorner8797 Yea when you have a large supply of old cars built up over a course of many decades that makes them cheaper. but when you sudden destroy a significant amount of those irreplaceable cars from the 90's and what not ,the supply of old cars is PERMANENTLY lower meaning PERMANENTLY higher prices of old cars for decades to come until the supply of old cars build up again. Than again in future when old cars are back in high supply it could have been higher had we not foolishly destroyed them simply for the small and shorter benefit of stimulating the auto industry.
Another side effect is there will be fewer cars that can be restored as collector items and museum pieces.... When I was younger I tried to restore a couple of 50 era cars life happened and I had to give it up.. but that opertity is reduced for the next generations
what really pissed me off is all the nice used cars that where junked keeping needy low-income people from being able to afford a low cost vehicle. this drove up the prices of used cars.. such a stupid waste of tax $
So much for caring about the poor... Let's price them out of buying a car and help some people go into debt so that the massive auto maker corporations can get some undeserved business... That sounds real ethical.
@@SemiMono . .. it was even worse than that, I'm told a survey was taken on the cars traded in and the cars people bought. It was, traded in, alot of older US pickups Mini Van's a nd suvs and the cars that people bought were Imports like Toyota Corolla s and those ugly Poopieass Priuses, that's what I heard, How did that help the US car makers?
I was at the u-pull-its in 2010. Tons of Explorers and Blazers that were C4Ced, with an average of 150K miles. Lots of life left! The normally junked ones always had 200K+.
@@bigpjohnson that kind of waste is just disturbing I don’t know why they couldn’t see that poorer people didn’t have the money even with the incentive they really could have used those used cars which I hold have been extremely cheap. Could have been a win win scenario but they threw it away
@@TheJasonrox It was a payoff to middle and upper class buyers, many of whom vote Dem. It was a recession, who the hell goes car shopping except for people that already have money and steady jobs?? The junkyards got their well-maintained cars instead of people who needed dependable cars to get to work and improve their lives.
Long ago, when I was a kid in the early 2000s, I heard some legend about how in America you can buy a used car for $500 (or less) and this car, with proper maintenance and care of course, will serve you for years and years and in the future may become a collector’s item Then came cash for clunkers and turned the story I heard as a kid into a distant memory...
This program hurt poor and low wage earners the most with the loss of affordable used cars in inventory. Also hurt home automotive mechanic DIY savers that drive used cars as a means to try keep food on the table.
Robert Crego I don't think anyone advocates the broken window fallacy for their own business. Of course if the government (taxpayers) subsidized a new, better window....
Rollo Larson debt spending is the lie that seeks to bypass this obvious truth. You spend your money on the window, then just borrow enough to spend on what u wanted aswell.
It seems like "progressives" are always saying "I can live with that" or "I'd be OK with that" when presented with the downsides of their meddling policies. Make no mistake: there's nothing compassionate about them. They don't care about anyone but themselves and their massive egos that depend on conspicuous "compassion".
"as opposed to the conservatives that look out for the little guy?" Simplistic binary response: "The guy who said something about progressives must be a conservative!". Go fuck yourself.
Liberals these days are just closet fascists. "I can live with making up the rules that you must follow. The reason I benefit from these rules is because they are good rules."
lets not pretend that liberals are the only ones with that mindset. and answer one question for me. of all the people that donated their cars, how many were forced to do so?
Inner G Not only that, but this was implemented just as I was coming out of high school /trade school, for auto body....I WAS PISSED! No one was hiring, cause this crap messed up their business as well.
Don't let the older ones fool you. They chosen to raise the price. Last time I checked, when you own a car, you decide how much your willing to sell it for.
It was a success. It was by design to take from the poor and give to the (rich) corps. It created more financial (and political) clout at the top, and more poor (and reliance) at the bottom . . . . The corporatist goal
@snowdaysrule2 - Paul Krugman, an Ivy League professor and Nobel Prize winning economist said it. Now, think about THAT next time you write out a $60K check covering your kid's tuition!
Why were AUTO PARTS not mentioned in this video? Cash for clunkers decimated the used auto parts industry and made repairing cars difficult and expensive for people like me who were laid off during this period. A major blow to low and middle income people. If we are honest, this program was never intended to help the economy or people. It was supposed to be a boon to the unions. The very unions who have driven up the price and lowered the quality of American cars.
Here where I live someone turned in a mint condition 1978 Grand Marquis. Fortunately the salesman had the foresight to call the owner of the dealership before any government paperwork was signed and the owner purchased it outright for himself.
It amazes me how they don't understand the most fundamental principles of economics... working simply for the sake of working is not a productive Enterprise. It is the value of the products that are produced by that labor that create economic wealth. These people are utterly moronic... By their logic ants should have the largest economy in the world. Those guys never stop working
Just what America needed...ANOTHER reason to go tens of thousands of dollars in debt and throw away something that could have benefited the used parts sector. They did this dumb shit in England too. Guy buys a car from GM. He drives it for five years and brings it back to the dealer to get a new one. Trouble is he hasn't fully paid for the old one but that's OK says GM. "We'll roll the old balance into the new loan." AND the cycle continues and you wonder why you're going bankrupt.
All cash for clunkers did was make it really hard to find parts for my old Ford truck. So many old trucks got crushed instead of being found in salvage yards.
I went to high school between 2008-2012. Cash for clunkers robbed many of my schoolmates from buying their first car without their parents help, or at all for those whose parents couldn't afford it. There's thousands of kids who didn't buy their first car until they were well into adulthood because of this program.
WE ARE STILL FEELING THIS TODAY. There are other things involved as well (not gonna get into that), however a whole generation of PERFECTLY DRIVEABLE cars were destroyed for LITERALLY NO REASON. Words cannot express how STUPID of an idea this was.
ANd of top of that, people went into debt to buy new cars they can't afford and have payments on. The cars they destroyed worked fine and they had no payment on them. WOW!! The Keynesian geniuses
...blame that on the countrys' leader, not the market...who do you think allows this stupidity ? I don't see Kelly Loeffler and other multi-millionaires struggling in the market...but I'm sure "inside" info is quite helpful to their bottom line.
I think cash for clunkers was a terrible idea for tax payers but it was a great idea for me. My POS Jeep that I bought six years earlier for $2100 got me $4500 for the program (KBB value about $500). Nine years later I still have the new car I bought. Best part though, was thanking my best friend (a liberal who voted for Obama) for paying more in taxes so I could buy my new car. It was priceless, lol.
It's like the gun buyback program. My town had a gun buyback. I had an old .22 with a wobbly barrel I paid $25.00 for it and I got $100.00 I then took the hundred and added $500 to it and bought a quality firearm.
Why didnt more people do this? Seems like people didnt communicate well. A bunch of cars worth more than 3k destroyed just for 3k each. The people were also idiots. Only a ~1-3k car being destroyed would be gov idiocy. A 5-6k+ car could have easily been sold to neighbors for 3k flat.
I had a clunker. A rusted out 1994 GMC Yukon GT 2-door with 100s of thousands of miles on it. It was my first car and it qualified for “cash for clunkers”. When I found out they would just destroy it I said hell no and sold it to a family friend for way less than the government offered. Don’t know whatever happened to it, but the mystery is way better than “the government destroyed it, the end”.
Absolutely the most accurate perspective of this program. Also the first ever to point out they crushed nice cars. This helped the very large dealers and drastically hurt the small lots. The average "clunker" was what small car lots sold and not the junk they trade in that really needs to get off the road.
I'll admit it, I'm broke. The cars I can afford are the 10 year old ones.The 10 year old car for $1000 or $1500 are now $3000 and $5000.My income didn't change, so where is the extra money gonna come from when my 1990 Ford or the 1995 Dodge needs to be replaced?Thanks Obama and the rest of you rich guys that can buy what ever you want.
Every time I think about this, I get really angry. It was a terrible & devastating blow for the independently-owned auto repair businesses, as well as the consumers. I personally was hurt badly, because I owned a transmission shop at the time. Untold billion$ of perfectly good cars & parts were sent to the scrap heap, and there was nothing anybody could do! It was as if somebody cut my legs off, because it became much harder and more expensive to track down parts.
The whole thing was a joke. They trashed good vehicles that where better than anything I had owned my entire life to that point. I drove cheap used beaters for work commuter cars for 15 years prior to this (while wife was equipped with much nicer, but still used, vehicle for her / the kids) I never spent over 3K in auto auctions and got anywhere from 3 to 7 years out of them. In 09 I had about 400 K miles run up on my work ride and I went shopping to replace it. I could not find a single vehicle under 5K at an auction that was even worth attempting to drive. Nothing but rolling scrap metal and very, very, new (likely repos) way over my budget. I ended up being forced to buy a cheapo economy car brand new because of this cash for clunkers crap.
So wait. 1st. You take money from people. 2nd. Buy cars from them. 3rd. Destroy the cars so the people can not by them back. 4th. People go and buy any cars they choose, When most of the cars on US market are not made in US(My Chevrolet Cruze 2017 is made in Mexico)! WTH, Whose economy are you trying to stimulate! I do not need to research this. This would have been lobbied by Car Dealerships. Because of only stimulation this would cause would have been their pockets.
No. They bought the cars w deficit spending so that future generations can pay either to buy back the bonds or suffer the spike in inflation that MMT promotes by saying gov can just mint more fiat cash to pay for all their stupid schemes. Keynesian economics is loads worse than trickle down theory.
Mikheil Ghvinianidze also the use car parts biz took a major hit, now people are forced to buy aftermarket parts from China. so I think china was in on this as well.
Dumbest idea ever! I drive a 20 year old truck. Why? Because it's paid for. I drive a 17 year old car. Why? Because it's paid for. My house is paid off? Why? Because I drive vehicles that were paid off long ago. You wanna sell more American automobiles? Make them cheaper to buy! Wanna sell more homes? Make them cheaper to buy!
Yeah. Only the government says get rid of your paid for car and go into debt buying a new car you couldn’t afford. Then it gets repossessed and you have NOTHING.
it was stupid. I still drive a 1991 Mercury Grand Marquis GS. IF they hadn't destroyed so many "clunkers", there would be a lot of usable parts out there for my still-runs-good- car. There still may be. My reaction was just "Oh, no...you f-ing idiots!" on a side not the window regulators on my car have bit the dust. or, at least Car Doctor says they can't fix them.
"you can't make a program that's going to make everyone happy" In the free market, everyone can be happy because people have the choice to support businesses that do them good or to not support any business at all.
Cash for Clunkers increased unemployment and poverty. The availability of cheap used cars dried up. What was there drastically increased in price. And the poor working stiff and single mother had no transportation for work, shopping, getting groceries, or transporting children to child care. So they had to rely on the state increasing welfare costs in a recession.
Stossel stumbled on the reason for propping up dictatorships. Then we can go in and rebuild after. A few companies benefit. Socialized costs and privatized profits....
John, good video. You forgot to mention the broken window fallacy by frederic bastiat, that would have sealed it for you. I guess one of your guests spoke about the seen and unseen, but didn't mention the source.
All this did was make purchasing a car harder for people with low income. All just for the auto industry to get stimulated for a little bit. A short term benefit for big business in exchange for a permanent problem for the working class. Great job Obama.
Poor people and especially homeless trying to get back on their feet had no cars available for years. We used to find $500 running cars to get them to their new jobs and then this program put an end to that.
I have a friend that lives on disability payments and he had an old Chrysler ‘K’ series car that was technically totaled out by the insurance company after a minor hit and run by someone else (it had other physical and operational issues too like certain door handles not working, no heater, and dead speedometer). I told him about this program, and he unhappily told me later that one could only buy a showroom new vehicle under the program. On a fixed income? Not happening. This and the hit to other automotive businesses in my area had me wondering why the program in the first place. The moment I realized the Democrats did not have Americans’ best interests at heart was when our then senior senator, a Democrat, praised the program as implemented. (The friend in question eventually came into a bit of money and which immediately went towards a better car)
I worked as a GM dealership tech back when all this happen and i was pretty sad to have to pour that liquid metal into the engine then hold it at redline until it seized up on a few of the cash for clunkers program cars. seemed like such a shame.
Many of the people who took advantage of the program were gonna buy new cars anyways, it just made them more opportunistic and they waited til the program started so they could get part of their purchase subsidized. The result: -The american taxpayers paid more in taxes to help cay buyers who could already afford their cars -The lack of good used cars, due to them being crushed, made once-affordable used cars not so affordable, so poor people had a harder time getting into a car In conclusion, another "stimulate the economy" program just ended up further siphoning money from the lower working class.
hurt the used parts industry and being able to keep what is out their harder. cant mention that now can we. some of the older stuff means somthing to some people. its vintage. an ara. u fools
that is where the CASH for clunkers comes in. people did not need to spend it on new cars. as long as they spent the money somehow. that is the idea behind the program. cash to stimulate the local economy.
The rebate program required a purchase or five year lease of a new vehicle. The people utilizing the subsidy were mostly NOT the demographic of people that depend on used parts.
_"The rebate program required a purchase or five year lease of a new vehicle. The people utilizing the subsidy were mostly NOT the demographic of people that depend on used parts."_ PRECISELY! Buying the affections of the middle class while "shafting" the working class. "New Liberalism" at its finest! +john doe, If you can't afford a $10 "side view mirror assy" at a "U-Pull-It" junkyard, how in the hell are you gonna afford a new car? C4C gets you a down payment...and 6 months later, the Repo Man comes calling.... ...oh, well. There's NOTHING new with "consumerism." What IS new is trying to "spin" it as a ecological godsend! Logically, about as absurd as GWB saying "keep America strong by going shopping" post-9/11.
I worked selling used car parts at the time and I can truly say that while this was taking place we took a huge hit in profits. Cars were destroyed that had many good parts on them which impacted our potential inventory...Not to mention that it forced people to take on loans that wouldn't have normally.
The only thing that cash for clunkers did was to make it hard for high school kids to find a pickup they could afford.
And immigrants buying up lower cost cars.
No wonder I can’t find anything affordable, never knew this stupid program ever existed.
Bastards
I know, I took my pickup that’s was only worth 3k and got 5k to trade it in for cash for clunkers.
Well said
As a car enthusiast this made my blood boil.
How many classics were destroyed, or even vehicles that needed minor repairs but had idiot owners...terrible but typical for Hussein Obama
I worked for a family that bought and sold wholesale cars. Bottom of the barrel stuff they got theyd end up fixing up and selling for ridiculous prices, not because they're being greedy but because cash for clunkers made all used cars still around overly expensive!!! fck all these progressives that want to destroy our country.
TOUGH MAN RANDY SAVAGE, mine to, think of all the perfectly good cars that could’ve lasted another 10-20 yrs instead they threw them in the trash.
Created more carbon, more pollutants in the air, & created a bigger pain in my A$$/climate change emissions SH!T.
TOUGH MAN RANDY SAVAGE like old car city. That is the saddest place for motor vehicle enthusiasts.
1:54 there’s and IROC-Z behind him
Broken window fallacy. A baker shows up to the bakery and finds a brick thrown through his window. A passerby sees his distress and explains that the smashed window is actually better for societey. He will buy new glass and the glass guy will buy new clothes with the money, and the tailor will buy bread at the bakery.
The baker points out that he was going to buy new clothes too but is now stuck replacing a window. In effect, societey has not gained wealth, it has lost it to the tune of the value of 1 window.
Slavery is good for society.
Baker needs to pull his bootstraps and work a double shift.
But he makes surplus bread so the price of bread falls and then the best he can afford to buy is the glassmaker's seconds at a thift store.
Unless they shred those to stimulate so baker has to work double for even longer to save up. Just in time for another brick stimulus.
I heard this broken window story years ago. I think it’s French. Sounds like European thinking. And the left says we need to be more like Europe. Yup.
BREEKI BRO Hazlitzz
"Only the govt thinks it can cut a foot off the too of a blanket, sew it to the bottom of the blanket, and get a longer blanket."
Frederic Bastiat
It also almost killed my automotive service company. Take the money out of your local economy and give it to big business. Isn't that the American way?
That's socialism
@@likeclockwork6473 Actually that's fascism but an equally bad economic system.
Now we have the virus lockdowns that have been shutting down businesses, while the rich are still getting richer.
That was Obamas way and people loved him for it
Now the stimulus bill isn't really going to help the citizens, all we get is $600 when alot of the money is going into companies and overseas.
They forgot the environmental impact that having to produce more new stuff.
Are you stupid, obviously you destroy an older car an 02 civic for example, smaller and lighter than modern cars, get high 30s low 40 mpg. And replace it with a new one, say a good ole american charger, and get high 10s low 20, but less pollution because more cats built in, obviously its better for the enviorment. At worst its net neutral, you replace a car with a car that cant hurt. But the new one cost more, which means its more economical and will generate revenue. Its also larger and heavier with more horsepower therefore safer. Not only that but, that old car was old, you cant move america foward with old things especially cars, imagine how much faster we could move forward with newer cars? Have you ever driven an audi, porchse or bmw? Those cars are super fast, thats how we move america forward.
@@devin19222 50% of the pollution done by a car over its lifetime happens before it's sold to you. You gotta melt steel, make rubber for tires, get the furniture, ship the parts halfway across the world to assemble it all together. It is actually *worse* to buy a new, economical car than it is to drive an old, less economical car.
Томас Андерсон Couldn’t have said it better myself
@@ТомасАндерсон-в1е Don't forget it puts people into more debt buy a new car instead of keeping their older paid off one. Feeds off the impulse of people to have new items and living outside their means.
Devin Pfennig who cares about the environment.
Commiefornia evidently, due to their recent ban on gas cars after a certain year.
Yep, I’m going to driving my 94 850CSi with no cat way past that date.
I remember being a young college student thinking this was a great idea at the time. Funny how people with no money or experience love the government.
So let me guess...you grew up and now you recognize the folly of your youth? We need a little bit of that right now with all the idiots voting for Bernie Sanders.
Looseel Scott Up until I was in my second year of college, I was incredibly left leaning. Was always told that conservatives are evil ignorant pigs who vote in corrupt politicians. I believed it for the longest time. Then I started questioning things after seeing some crazy diversity initiatives and seeing that video of Big Red.
After listening to both sides with an open mind, I can now say that I’ve been a staunch conservative for the past five years.
@@ogalief, you are a real Liberal. You vote principal over party.
This will be todays bernie supporters when they grow up
...and they elected Trump.
It just took cars away from poor people
Another side effect of people falling for MMT and keynesian economic theory.
That was their goal!
Just another way to keep the populous on the Government teat!
That was the point. They wanted poor people to become dependant on the bank and politicians for their livelihood in order to secure future votes. The poor lost their cheap affordable and functional vehicles and got an unpaid car loan on their credit and no way to dig themselves out without government assistance.
This BS program didnt even help really poor people get a new car.
It gave 3 or 4 thousand towards a new car, and it had to be brand new.
So when you figure how much a brand new car costs, really poor people didnt get shit from this program.
Thanks for nothin, Obuma!
True!
The truth is they could have sold those cars or parts. Could have benefited the poor (rather than just middle class).
Yes destroy cars that can be sold for lesser value so people who can't afford a new car are without. Smart.
you destroy cars that are not running and would not be sold. i think you are missing the entire fucking point. and meanwhole you give people money to spend. maybe on cars, maybe not. our economy is based on spending. most of the cars taken in by the program were junk cars that were never going to run. and yes, the4 program ran out of money. THAT IS WHAT IT WAS SUPPOSED TO DO.
Cash for clunkers was badly abused and plenty of good vehicles were sent to the crusher for a quick buck.
are you telling me that people donated fully operational vehicles?
You betcha
why would i seel a car for lesser value if i can get more money through the program?
”The most terrifying words in the English language are: I'm from the government and I'm here to help. ”
- Ronald Reagan
Reagan made sure of that!
Read it too fast and I thought it said Joe Rogan. Im starting to become dyslexic
Yeah, trickle down reaganomics DEFINITELY worked 🙄
Zach Hunter exactly! Reagan thought he was helping by backing trickle down economics, and that has been the standard since by idiots
He was a shit president
"It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong". -- Thomas Sowell
What it did, was take a large group of people who had paid off cars... and put them in debt for 5, 6, or 7 years. Great idea!
No one forced them to do that though.
@Mister Deplorable, Hey Republican ; P How do you think Pelosi can afford her vacation, And Odumbmas retirement fund !
Cash for clunkers... The reason I can't find cheap used body parts and glass for my 1977 caddy.
john doe they had to crush the older cars to make room for all the incoming cars they had to crush from C4C. Many acres of older cars.
did they? were all those cars confiscated by the government??? were they forcefully taken away from their owners?
James B it's all a scam to get people to buy cars that won't last and are throw away cars and the process starts all over again
john doe I bet
you cant buy a car for a thousand bucks, dumbass. not unless it is another clunker. people can do simple math.
Building in Haiti: *falls and crushes 7 people
Politicians: aaaah yes, the smell of economy
Riots in america: democrats; "ahh the smell of votes and hurting the economy during trump's first term."
I was in Hati after the earthquake. Nothing has been rebuilt in spite all the money we've sent there.
@@michaelvol8922 It's almost as if money isn't the answer to all of the problems. What they need are materials and people who are trained to do the work needed to rebuild. Just throwing money at the problem doesn't make the problem go away.
Yep. Crops were set on fire during the great depression to "stimulate the economy" while people were starving. That's the magic of Keynesian economics
It also drove the cost of salvage parts way up.
Cash for Clunkers was a Democrat pay off for the Auto Union. All the steel Unions got in on it. That is the real deal.
Dog Mat here's the kicker,the metal industry was overstocked and the metal prices literally plummeted to 50 USD a ton a all time low ever in which before they paying 200 USD a ton you cant see a conspiracy there..lol
Don’t forget the banksters! Nearly ALL of Obama’s cabinet were ex Wall Street or bankers. All of the high interest auto loans made from cash for clunkers to people who should never have bought a brand new car with debt - it rewarded those banker guys too!
All the steel? Steel has solely been imported from China until 2017.
@@timgreen2426 seriously. I hope to god you are kidding.
@@FreedomInc look it up. Sad but true. Thats why the car manufacturers went overseas & steel cities collapsed. Places that were booming are now ghettos. Also, if you have a vehicle made after the 80's, go tap on it. Feels more like aluminum than steel. Made in China trademark.
the sad part is those cars that were destroyed were better than the new crap on the road today.
if your car was running, why would you turn it in?
Blue Infinity agreed
Yeahhh... no. I'm sorry, see this myth everywhere. If you actually think any car from the 60s, 70s, 80s, 90s, or even 2000s is better than what you drive today you are looking at them thru very, very thick rose colored glasses.
Cars did NOT last 150 or 200K miles on average like they can today. People forget a 60s or 70s car was considered nothing but junk at 80-100K miles. Hell, I put 110K on a 2008 Toyota over a period of 7 years... the only thing I ever replaced on it (other than oil change/filters) was a single rear tailight. Good luck doing that on anything made pre 1995~.
And on top of that, a freaking Accord V6 turning mid 13s would outrun 90 percent of the 60s "muscle" cars, not to mention almost everything from the 70s, 80s, and 90s. Not to mention it would be FAR safer, stop faster, stop more times in a row without brake fade (drum brakes anybody?) and handle far better, not to mention all the safety advantages of traction control, stability control, advanced ABS, you name it.
I'm a lover of 60s muscle, and a hot rodder at heart. But todays cars are the fastest, best handling, safest, most reliable, nicest interior, and best equipped cars ever made. The only downside is the cost of a new car.
_"if your car was running, why would you turn it in?"_
Because consumerism? People are programmed to like shiny new toys. Dems exploited that...and even gave it a veneer of "eco-virtue" to falsely assuage anyone's conscience that might be troubling them about being "wasteful."
_"Cars did NOT last 150 or 200K miles on average like they can today. People forget a 60s or 70s car was considered nothing but junk at 80-100K miles. Hell, I put 110K on a 2008 Toyota over a period of 7 years... the only thing I ever replaced on it (other than oil change/filters) was a single rear tailight. Good luck doing that on anything made pre 1995~."_
Uh, my 1994 F150 has 212,000 miles on it. Technologically, the engine was a "clean sheet of paper" in *1963.* Very little has broken...and if it ever does, the mechanical simplicity and copious underhood room ensures it can be cheaply and easily fixed. A seven-year old car is barely an adolescent...come back after a couple of decades and let me know how your car is faring!
Again, while it's technically a 1994, everything on it (other than the EFI) is "legacy." Body-on-frame. The 300-C.I. inline-6 (with METAL TIMING GEARS...don't you have a rubber band for your cams?) (And from the way you talk, haven't you discarded your "Toy" already? For all you know, it's no longer on the road! Meaning I "beat" your rice bruner by 100k and 17 years!)
I worked at a Chrysler dealership at the time. It was absolutely disgusting to see them destroying perfectly functional vehicles.
Another problem, the loss of used spare parts. Remember the rules of the program said the whole car needed to be destroyed. They even had to put a liquid in the engines to seize them. What a great program!
Beat me to it. Oh, you got sideswiped and need a replacement door? Now you're going to spend much more time driving around with a dented door while the auto salvage places look for your year and model.
@@r5t6y7u8 I understand the fact that there would be ACRES ON ACRES of used cars, stacked up together...but for being the party of the ''environement'' ect they do a shit job at preserving precious metals ect. Or things which take a bunch of manufacturing. Aka most things in a car. Body panels, engines, plastics rubbers cloth metal lines nuts bolts. It would of been better to just do what some scrap yards do and fix up the cars which can be fixed reasonably cheap, sell them and then the rest, go out for parts to fix peoples cars. Then again it isn't the ''stimulus'' that the auto industry ''needed''. I understand why it was done, but it was not good at all.
Yep, I didn't fall for their bulls**t. But now instead of being able to buy the part you need for your car (from a junkyard), you have to buy the entire door (instead of just the door latch). F'ing dumba**es!!!
🙄👎
I kept my vehicles. I saw it as a band wagon that everybody was jumping on. As usual, the band wagon went off the cliff.
Wrecked prices on used cars and car parts right when I became old enough to start driving. Used car prices are still high.
Thanks Obama.
Well.... I mostly blame Cox Enterprises for the increased price of used cars. Cox, the owner of Autotrader purchased Kelley Blue Book in 2010. Cox has a vested interest in inflating the price of used cars, with the acquisition of KBB they can do just that. A lot of people use Kelley Blue Book to price their vehicles and they know it.
I can't find a used starter truck for a decent price. It fucking sucks
Hence the expression the road to hell is paved with good intentions.
Where were the good intentions? I must have missed that part of this debacle. But you got the road to hell part right.
@@rodx5571 ask them. Everything marxist leftists say is for our own good until you learn that leftists want about 200 million people here in America, to just die so their socialist utopia complete with all renewable energy resourses can have a slim chance of working. And if it doesn't, they'll just kill off more people. That really is their final solution to the "human problem" here on earth. Just visit their web pages, they all to a person want the earth's population to shrink.
@@Miatacrosser . ...a nd where is that great protector of the truth? The .media, bought and paid for by the liberal elites who want to buy this country and turn us all into slaves .
Good intentions...the only good it did was raise prices, raise taxes and push poor people out of the market. The only people who benefited were car companies (new and used). They got huge tax deals from the Gov too. Car lobbyists got money pushed to the car industry that the politicians have huge investment stakes in...
"I wonder how much wealth I could create if I caused an earthquake."
-never let a crisis go to waste!
You were a few months too early for that one to really hit home...
Or a pandemic! Really spurring on the healthcare industry!
On a funny note, the people that participated in that program had to claim that rebate as income and got taxed on it. That program messed up used car prices for two years.
No it's still having a effect
@@frankorner8797 Yea when you have a large supply of old cars built up over a course of many decades that makes them cheaper. but when you sudden destroy a significant amount of those irreplaceable cars from the 90's and what not ,the supply of old cars is PERMANENTLY lower meaning PERMANENTLY higher prices of old cars for decades to come until the supply of old cars build up again. Than again in future when old cars are back in high supply it could have been higher had we not foolishly destroyed them simply for the small and shorter benefit of stimulating the auto industry.
Another side effect is there will be fewer cars that can be restored as collector items and museum pieces.... When I was younger I tried to restore a couple of 50 era cars life happened and I had to give it up.. but that opertity is reduced for the next generations
The prices are still awful, Ford rangers are getting dumb in 4wd.
*two decades
it'll create lots of jobs in asia since most stuff is imported
hey obama did his best...
to destroy small businesses
what really pissed me off is all the nice used cars that where junked keeping needy low-income people from being able to afford a low cost vehicle. this drove up the prices of used cars.. such a stupid waste of tax $
Yep I agree.
So much for caring about the poor... Let's price them out of buying a car and help some people go into debt so that the massive auto maker corporations can get some undeserved business... That sounds real ethical.
@@SemiMono . .. it was even worse than that, I'm told a survey was taken on the cars traded in and the cars people bought. It was, traded in, alot of older US pickups Mini Van's a nd suvs and the cars that people bought were Imports like Toyota Corolla s and those ugly Poopieass Priuses, that's what I heard, How did that help the US car makers?
It just took cheap reliable cars off the road
I was at the u-pull-its in 2010. Tons of Explorers and Blazers that were C4Ced, with an average of 150K miles. Lots of life left! The normally junked ones always had 200K+.
@@bigpjohnson that kind of waste is just disturbing I don’t know why they couldn’t see that poorer people didn’t have the money even with the incentive they really could have used those used cars which I hold have been extremely cheap. Could have been a win win scenario but they threw it away
@@TheJasonrox It was a payoff to middle and upper class buyers, many of whom vote Dem. It was a recession, who the hell goes car shopping except for people that already have money and steady jobs?? The junkyards got their well-maintained cars instead of people who needed dependable cars to get to work and improve their lives.
@@TheJasonrox: Politicians are bought by lobbyists and don't give a fuck about the populace. All they care about is getting rich.
After that program ended, it was actually cheaper to buy some models new. That’s how you can tell they screwed up a market
Toyota Tacoma
Long ago, when I was a kid in the early 2000s, I heard some legend about how in America you can buy a used car for $500 (or less) and this car, with proper maintenance and care of course, will serve you for years and years and in the future may become a collector’s item
Then came cash for clunkers and turned the story I heard as a kid into a distant memory...
This program hurt poor and low wage earners the most with the loss of affordable used cars in inventory. Also hurt home automotive mechanic DIY savers that drive used cars as a means to try keep food on the table.
The broken window fallacy. People never learn.
Literally.
It's as if life is a parody when you see this stuff.
Robert Crego I don't think anyone advocates the broken window fallacy for their own business. Of course if the government (taxpayers) subsidized a new, better window....
A few weeks ago there was a guy on a Reason video defending the candlestick maker's petition.
Rollo Larson debt spending is the lie that seeks to bypass this obvious truth. You spend your money on the window, then just borrow enough to spend on what u wanted aswell.
"The terror attack...could even do some economic good..."
*People screaming in fear in the background*
This had to be the worst idea the government ever had. I can't even describe how livid I was when this whole thing started.
A lot of older, potentially well built better than modern cars were destroyed during this.
"I can live with that"
Yea, what do you drive?
It seems like "progressives" are always saying "I can live with that" or "I'd be OK with that" when presented with the downsides of their meddling policies.
Make no mistake: there's nothing compassionate about them. They don't care about anyone but themselves and their massive egos that depend on conspicuous "compassion".
"as opposed to the conservatives that look out for the little guy?"
Simplistic binary response: "The guy who said something about progressives must be a conservative!".
Go fuck yourself.
Liberals these days are just closet fascists. "I can live with making up the rules that you must follow. The reason I benefit from these rules is because they are good rules."
lets not pretend that liberals are the only ones with that mindset. and answer one question for me. of all the people that donated their cars, how many were forced to do so?
John Doe, you are an idiot and nobody forced you to be one. But, I can live with that.
RIP used car market, i remember when finding a bargain was easy
Inner G
Not only that, but this was implemented just as I was coming out of high school /trade school, for auto body....I WAS PISSED! No one was hiring, cause this crap messed up their business as well.
Don't let the older ones fool you. They chosen to raise the price. Last time I checked, when you own a car, you decide how much your willing to sell it for.
Inner G - yep, that's all it did, drive up the price at taxpayer expense.
So you pay more for taxes AND cars, for that grinning shit-ball.
I know about half of the used car lots in my area went under when this happened.
In fact, one of them is still an empty lot nearly 10 years later.
People that can't afford a new car rely on buying a used car, Cash for Clunkers, talk about a total failure.
It was a success.
It was by design to take from the poor and give to the (rich) corps. It created more financial (and political) clout at the top, and more poor (and reliance) at the bottom . . . . The corporatist goal
@@jaylast1958 Capitalism in a nutshell.
"The terror attack... could even do some economic good" Someone Actually Said That?!?
He's even considered a legitimate "Economist."
He's too blinded by ideological values, and most of the social sciences are these days.
@snowdaysrule2 - Paul Krugman, an Ivy League professor and Nobel Prize winning economist said it. Now, think about THAT next time you write out a $60K check covering your kid's tuition!
Paul Krugman is an @55. One of the dumbest Nobel Prize Awards ever.
These clunkers that still on road today would go for $10,000 or more.
Why were AUTO PARTS not mentioned in this video? Cash for clunkers decimated the used auto parts industry and made repairing cars difficult and expensive for people like me who were laid off during this period. A major blow to low and middle income people. If we are honest, this program was never intended to help the economy or people. It was supposed to be a boon to the unions. The very unions who have driven up the price and lowered the quality of American cars.
Here where I live someone turned in a mint condition 1978 Grand Marquis. Fortunately the salesman had the foresight to call the owner of the dealership before any government paperwork was signed and the owner purchased it outright for himself.
Wow! What a beautiful car! What colour?
I'm going to destroy my perfect old house. I'm a carpenter. Maybe I can get a job.
It amazes me how they don't understand the most fundamental principles of economics... working simply for the sake of working is not a productive Enterprise. It is the value of the products that are produced by that labor that create economic wealth. These people are utterly moronic... By their logic ants should have the largest economy in the world. Those guys never stop working
Just what America needed...ANOTHER reason to go tens of thousands of dollars in debt and throw away something that could have benefited the used parts sector. They did this dumb shit in England too. Guy buys a car from GM. He drives it for five years and brings it back to the dealer to get a new one. Trouble is he hasn't fully paid for the old one but that's OK says GM. "We'll roll the old balance into the new loan." AND the cycle continues and you wonder why you're going bankrupt.
This reminds me of the 1984 part about just shoveling products into a hole
All cash for clunkers did was make it really hard to find parts for my old Ford truck. So many old trucks got crushed instead of being found in salvage yards.
I went to high school between 2008-2012. Cash for clunkers robbed many of my schoolmates from buying their first car without their parents help, or at all for those whose parents couldn't afford it. There's thousands of kids who didn't buy their first car until they were well into adulthood because of this program.
WE ARE STILL FEELING THIS TODAY. There are other things involved as well (not gonna get into that), however a whole generation of PERFECTLY DRIVEABLE cars were destroyed for LITERALLY NO REASON. Words cannot express how STUPID of an idea this was.
ANd of top of that, people went into debt to buy new cars they can't afford and have payments on. The cars they destroyed worked fine and they had no payment on them. WOW!! The Keynesian geniuses
Kenyan, you mean?
So we make people richer, by taking their money and destroying their stuff?
...makes sense.
the stock market is struggling time to execute some bankers
Ikr
...blame that on the countrys' leader, not the market...who do you think allows this stupidity ?
I don't see Kelly Loeffler and other multi-millionaires struggling in the market...but I'm sure "inside" info is quite helpful to their bottom line.
I never knew what Cash for Clunkers even was only heard about it, always thought it sounded stupid, glad to see I was right 😂
I think cash for clunkers was a terrible idea for tax payers but it was a great idea for me. My POS Jeep that I bought six years earlier for $2100 got me $4500 for the program (KBB value about $500). Nine years later I still have the new car I bought. Best part though, was thanking my best friend (a liberal who voted for Obama) for paying more in taxes so I could buy my new car. It was priceless, lol.
I agree and it's just about the same story for me. Best deal ever and I still own the car.
It's like the gun buyback program. My town had a gun buyback. I had an old .22 with a wobbly barrel I paid $25.00 for it and I got $100.00 I then took the hundred and added $500 to it and bought a quality firearm.
I bought an old car from a junk yard for 100 bucks titled ir under my name for 200 dollars sold it to cash for clunkers for 3700 lmao i made a killing
Why didnt more people do this? Seems like people didnt communicate well. A bunch of cars worth more than 3k destroyed just for 3k each. The people were also idiots. Only a ~1-3k car being destroyed would be gov idiocy. A 5-6k+ car could have easily been sold to neighbors for 3k flat.
Most people are too lazy to log online to craigslist and make a post.
What was successful about it was it took all the cars with Obama bumper stickers off the road.
I had a clunker. A rusted out 1994 GMC Yukon GT 2-door with 100s of thousands of miles on it. It was my first car and it qualified for “cash for clunkers”. When I found out they would just destroy it I said hell no and sold it to a family friend for way less than the government offered. Don’t know whatever happened to it, but the mystery is way better than “the government destroyed it, the end”.
Absolutely the most accurate perspective of this program. Also the first ever to point out they crushed nice cars. This helped the very large dealers and drastically hurt the small lots. The average "clunker" was what small car lots sold and not the junk they trade in that really needs to get off the road.
I'll admit it, I'm broke. The cars I can afford are the 10 year old ones.The 10 year old car for $1000 or $1500 are now $3000 and $5000.My income didn't change, so where is the extra money gonna come from when my 1990 Ford or the 1995 Dodge needs to be replaced?Thanks Obama and the rest of you rich guys that can buy what ever you want.
Every time I think about this, I get really angry. It was a terrible & devastating blow for the independently-owned auto repair businesses, as well as the consumers. I personally was hurt badly, because I owned a transmission shop at the time. Untold billion$ of perfectly good cars & parts were sent to the scrap heap, and there was nothing anybody could do! It was as if somebody cut my legs off, because it became much harder and more expensive to track down parts.
"some of the trade-offs, I can live with..." ...cause I don't buy used cars!!! Oh, shit, are we still recording? TURN THAT OFF!!
John, we love your segments!!! Thanks so much for investing the time to provide such indepth perspective.
Not to mention how many priceless old cars were destroyed under this stupidity
Government: creating problems for the sake of solving them
When Polosi opens her mouth: "this (destruction) could be good for a boom economy..." everything sounds so silly.
Pelosi really wore out her welcome in her time in office. 😩
Im crying when i see a nice Jeep CJ7 goin to waste for politics :( Ship it to me in Sweden and i take care of it ;)
it should arrive in a very small box at your door soon, but i dont know how your going to unfold all the crushed parts
My CJ7 even though it's half apart will not see a crusher as long as I own it. Ditto my CJ5.
Scrap CJ:s cost about $1000 + in Sweden... so there is money to be made mates :)
renault fyra good one..lol
Look at Consumer Reports. Their quality is SHIT and they are for asshole douchebags
The whole thing was a joke. They trashed good vehicles that where better than anything I had owned my entire life to that point. I drove cheap used beaters for work commuter cars for 15 years prior to this (while wife was equipped with much nicer, but still used, vehicle for her / the kids) I never spent over 3K in auto auctions and got anywhere from 3 to 7 years out of them. In 09 I had about 400 K miles run up on my work ride and I went shopping to replace it. I could not find a single vehicle under 5K at an auction that was even worth attempting to drive. Nothing but rolling scrap metal and very, very, new (likely repos) way over my budget. I ended up being forced to buy a cheapo economy car brand new because of this cash for clunkers crap.
Chairman Mao would have loved Cash for Clunkers.
Again a government policy fails miserably. By the way of course it was our own money in the treasury the govt. used to pay out in the program.
So wait.
1st. You take money from people.
2nd. Buy cars from them.
3rd. Destroy the cars so the people can not by them back.
4th. People go and buy any cars they choose, When most of the cars on US market are not made in US(My Chevrolet Cruze 2017 is made in Mexico)!
WTH,
Whose economy are you trying to stimulate!
I do not need to research this. This would have been lobbied by Car Dealerships. Because of only stimulation this would cause would have been their pockets.
No. They bought the cars w deficit spending so that future generations can pay either to buy back the bonds or suffer the spike in inflation that MMT promotes by saying gov can just mint more fiat cash to pay for all their stupid schemes. Keynesian economics is loads worse than trickle down theory.
Mikheil Ghvinianidze also the use car parts biz took a major hit, now people are forced to buy aftermarket parts from China. so I think china was in on this as well.
Dumbest idea ever! I drive a 20 year old truck. Why? Because it's paid for. I drive a 17 year old car. Why? Because it's paid for. My house is paid off? Why? Because I drive vehicles that were paid off long ago. You wanna sell more American automobiles? Make them cheaper to buy! Wanna sell more homes? Make them cheaper to buy!
Remember when you could buy a car off Craigslist for $500 and drive it around for two years? Pepperidge Farm remembers.
With a name like Smuckers it has to be good.
Yeah. Only the government says get rid of your paid for car and go into debt buying a new car you couldn’t afford. Then it gets repossessed and you have NOTHING.
My heart broke when you broke the guitars lol
Lou Fin A perfectly good guitar should never be destroyed to make a point.
it was stupid. I still drive a 1991 Mercury Grand Marquis GS. IF they hadn't destroyed so many "clunkers", there would be a lot of usable parts out there for my still-runs-good- car. There still may be. My reaction was just "Oh, no...you f-ing idiots!" on a side not the window regulators on my car have bit the dust. or, at least Car Doctor says they can't fix them.
"you can't make a program that's going to make everyone happy"
In the free market, everyone can be happy because people have the choice to support businesses that do them good or to not support any business at all.
Cash for Clunkers increased unemployment and poverty. The availability of cheap used cars dried up. What was there drastically increased in price. And the poor working stiff and single mother had no transportation for work, shopping, getting groceries, or transporting children to child care. So they had to rely on the state increasing welfare costs in a recession.
That's kind of like saying "why don't you burn down your 1950 ranch-style house so that we can build a 2020 single-family home? it creates jobs?"
Stossel stumbled on the reason for propping up dictatorships. Then we can go in and rebuild after. A few companies benefit. Socialized costs and privatized profits....
4:19 the rims were alright tho :(
BRO I THOUGHT THE SAME THING ),:
John, good video. You forgot to mention the broken window fallacy by frederic bastiat, that would have sealed it for you. I guess one of your guests spoke about the seen and unseen, but didn't mention the source.
All this did was make purchasing a car harder for people with low income. All just for the auto industry to get stimulated for a little bit. A short term benefit for big business in exchange for a permanent problem for the working class. Great job Obama.
this is like tanking the stock market 90% just so you can cheer when it rebounds 20%.
High school kids must of had a hard time buying a used car.
This program made it too ecpensive for me to buy a good used car while I was in high school
Thanks John!
john is lying to you
john doe lol your name is John. I bet you meant you.
Poor people and especially homeless trying to get back on their feet had no cars available for years. We used to find $500 running cars to get them to their new jobs and then this program put an end to that.
I have a friend that lives on disability payments and he had an old Chrysler ‘K’ series car that was technically totaled out by the insurance company after a minor hit and run by someone else (it had other physical and operational issues too like certain door handles not working, no heater, and dead speedometer). I told him about this program, and he unhappily told me later that one could only buy a showroom new vehicle under the program. On a fixed income? Not happening. This and the hit to other automotive businesses in my area had me wondering why the program in the first place. The moment I realized the Democrats did not have Americans’ best interests at heart was when our then senior senator, a Democrat, praised the program as implemented. (The friend in question eventually came into a bit of money and which immediately went towards a better car)
Dorsey-You can create a program that's going to make everybody happy, I can live with it.
Don't start the program then.
I worked as a GM dealership tech back when all this happen and i was pretty sad to have to pour that liquid metal into the engine then hold it at redline until it seized up on a few of the cash for clunkers program cars. seemed like such a shame.
car murder
"Ending is better than mending!" - A Brave New World
Many of the people who took advantage of the program were gonna buy new cars anyways, it just made them more opportunistic and they waited til the program started so they could get part of their purchase subsidized. The result:
-The american taxpayers paid more in taxes to help cay buyers who could already afford their cars
-The lack of good used cars, due to them being crushed, made once-affordable used cars not so affordable, so poor people had a harder time getting into a car
In conclusion, another "stimulate the economy" program just ended up further siphoning money from the lower working class.
I'm a taxpayer and I do not endorse ANYTHING the government does with my money!!!
Spend 4500$ to earn 1000$ logic of government
hurt the used parts industry and being able to keep what is out their harder. cant mention that now can we. some of the older stuff means somthing to some people. its vintage. an ara. u fools
what good are those used parts when people do not have the money to buy them?
If they can't afford old used parts,they surely can't afford a new vehicle.
that is where the CASH for clunkers comes in. people did not need to spend it on new cars. as long as they spent the money somehow. that is the idea behind the program. cash to stimulate the local economy.
The rebate program required a purchase or five year lease of a new vehicle. The people utilizing the subsidy were mostly NOT the demographic of people that depend on used parts.
_"The rebate program required a purchase or five year lease of a new vehicle. The people utilizing the subsidy were mostly NOT the demographic of people that depend on used parts."_
PRECISELY! Buying the affections of the middle class while "shafting" the working class. "New Liberalism" at its finest!
+john doe, If you can't afford a $10 "side view mirror assy" at a "U-Pull-It" junkyard, how in the hell are you gonna afford a new car? C4C gets you a down payment...and 6 months later, the Repo Man comes calling....
...oh, well. There's NOTHING new with "consumerism." What IS new is trying to "spin" it as a ecological godsend! Logically, about as absurd as GWB saying "keep America strong by going shopping" post-9/11.
Democrats are so innovative,,, how have those Housing Project units in the inner cities worked out all these years?
Look at all the repairs lost. No stimulus for the repair industry. More like a recession.
I worked selling used car parts at the time and I can truly say that while this was taking place we took a huge hit in profits. Cars were destroyed that had many good parts on them which impacted our potential inventory...Not to mention that it forced people to take on loans that wouldn't have normally.
Thanks obama
Businesses are only as sustainable as the *spending power* of consumers.
Conjuring up erroneous expenses, hurt spending power.
"And some of the consequences ... I can live with".
And the rest of us can get bent...
cash for clunkers is a classic example of the broken window fallacy
It's literally the broken window fallacy.