Tuesday, June 9, 2009

Flashback: Waiting for the Subsidy

The AP reports "Consumers could receive rebates of up to $4,500 for turning in their gas-guzzling cars and trucks for more fuel-efficient vehicles under a House proposal.

President Barack Obama has urged Congress to approve consumer incentives for new car purchases as part of the government's efforts to reorganize General Motors Corp. and Chrysler LLC through the bankruptcy courts."

A noble goal! But it has the opposite of the intended effects because it rewards people who bought gas guzzlers in the past and gives no reward to those who bought fuel efficient vehicles.

I can hear you saying that you did not consider this when you purchased your vehicle, and that you doubt that Americans were clever enough to anticipate this.

Well, not everyone can be as smart as Chicago cab drivers, or people who bought Hummers in 2008.

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