Bjerknes

"Top Economist"
Mar 16, 2004
116,119
what up ladies
Twadin'. Twadin' little bit.


Hey, did you know that the C4C program caused automobile prices to rise and that the cash back was taxable?

I love people who go in to debt up to their eyeballs!

Perhaps the government will come up with a "Cash for Repo-ed Cash For Clunkers Cars" program.
 

.zero

★ ★ ★
Aug 8, 2006
82,896
Twadin'. Twadin' little bit.


Hey, did you know that the C4C program caused automobile prices to rise and that the cash back was taxable?

I love people who go in to debt up to their eyeballs!

Perhaps the government will come up with a "Cash for Repo-ed Cash For Clunkers Cars" program.
:lol:

and then those ppl buy a new car for having their recently purchased vehicle repo-ed :lol:

what a vicious cycle :D
 

Enron

Tickle Me
Moderator
Oct 11, 2005
75,664
C4C was a decent idea in theory, but no one really thought it out. Hence the tax issues and the "longevity" of the program. It could have been very successful with a little more thinking involved.:D
 

Bjerknes

"Top Economist"
Mar 16, 2004
116,119
C4C was a decent idea in theory, but no one really thought it out. Hence the tax issues and the "longevity" of the program. It could have been very successful with a little more thinking involved.:D
I don't agree. Short term spikes in demand cause more volatile price fluctuations and overshooting. Moreover, artificial increasing demand in the short run does nothing for long term growth and can actually hinder it. It's very much like that gas tax holiday crap the candidates were talking about a year ago.

But the real issue here is this: if you have a car that works, you should not be going into debt to buy another one. That's what this whole program was about -- keeping the debt bubble growing.

I can not show up period if you like :D
Hmm, speaking of debt, do you take IOU's? :D
 

swag

L'autista
Administrator
Sep 23, 2003
84,776
C4C was a decent idea in theory, but no one really thought it out. Hence the tax issues and the "longevity" of the program. It could have been very successful with a little more thinking involved.:D
I think it was a stupid idea, really. It created an artificial economy in miniature with no longer-lasting effects.
 

Enron

Tickle Me
Moderator
Oct 11, 2005
75,664
I don't agree. Short term spikes in demand cause more volatile price fluctuations and overshooting. Moreover, artificial increasing demand in the short run does nothing for long term growth and can actually hinder it. It's very much like that gas tax holiday crap the candidates were talking about a year ago.

But the real issue here is this: if you have a car that works, you should not be going into debt to buy another one. That's what this whole program was about -- keeping the debt bubble growing.
There's a lot more to it than that. C4C wasn't completely about sales.

It had nothing what-so-ever to do with getting more used cars on the road and eliminating high mpg vehicles and reducing the front end factory costs. This single goal of the CRC was to increase debt. That's sarcasm mind you.

As for the real issue: If your gas guzzler has your bank broken, get a new car. If not then I agree you should rock your ride until it's rocked. Speaking of rocked rides I'm pretty sure I'm going to have to get a replacement whip in the next 2-3 years.
 

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