In his speech about the GM bankruptcy yesterday, President Barack Obama (from the New York Times) said:
And that’s why I’m calling on Congress to pass fleet modernization legislation that can provide a credit to consumers who turn in old cars and purchase cleaner, more fuel-efficient cars. (emphasis added)
Turn in old cars. It’s long been a talking point of liberals and environmentalists that cars older than a given age should be removed from the highways. The usual mantra goes “The government should buy all cars older than X and pay the owner $750. Then the owner could go out and buy a newer, cleaner, more efficient car.” The advocates for this position either fail or refuse to understand that the owners will not be able to find a car to buy with their $750. Basic economics.
President Obama used the words “turn in” not “trade in.” He will give folks a credit - I suppose that means an income tax credit - for doing this. This sounds like the used cars will go to the government and be removed from the market. No more used cars. You either buy an expensive putt-putt new car, or you go without. It appears that he’s set out to destroy the used car market.
NEW FROM GM.GOV!
IT'S OUR PRESIDENT'S DAY
NO MONEY DOWN,
NO PAYMENTS
EVER
SALE!
"That's right, citizens! Turn in your clunky old car and we will GIVE you a brand-new General Motors automobile of your choice -- with NO credit check, NO money down and NO payments, EVER!
"How can we do this, you ask! That's EASY! You come into your local GM.gov dealership, pick up your free car, and we make SOMEONE ELSE pay for it! That's right! Somewhere out there is a Republican with a job and a dollar in his pocket, and as your President I promise you I WILL GET THAT DOLLAR!
"So act now! This offer is for a limited time only, as our Canadian and Mexican parts suppliers are getting antsy about offering us credit. So BUY TODAY! It's not like it costs you anything! It's only money!
"Someone ELSE's money..."
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