Tuesday, August 11, 2009

Foreign Cars are all the Rage...

Ten Top Trade-Ins Under Cash-for-Clunkers:
1. Ford Explorer
2. Ford F150 Pickup 2WD
3. Jeep Grand Cherokee 4 WD
4. Jeep Cherokee 4 WD
5. Dodge Caravan/Grand Caravan
6. Chevrolet Blazer 4 WD
7. Ford Explorer 2 WD
8. Ford F150 Pickup 4 WD
9. Chevrolet C1500 Pickup 2 WD
10. Ford Windstar FWD Van

And, the Top Ten New Car Purchases, subsidized by the American taxpayer, are....mainly foreign vehicles! Congrats President Obama!

Top Ten New Car Purchases Under Cash-for-Clunkers:
*1. Toyota Corolla
2. Ford Focus FWD
*3. Honda Civic
*4. Toyota Prius
*5. Toyota Camry
6. Ford Escape FWD
*7. Hyundai Elantra
8. Dodge Caliber
*9. Honda Fit
10. Chevrolet Cobalt

It is a violation of the World Trade Organization rules to enact a public subsidy program and skew it toward only domestically produced products, so the Congress has no choice but to extend the program to all comers. No choice, that is, but to not spend the money in the first place.

Cash-for-Clunkers will do wonders for the Japanese economy, but its impact on the US job situation is problematic. This unintended consequence is a great illustration of what happens when the blunt tool of government subsidy is applied to the fine tuning of a free market economy. Government planners keep getting it wrong. That's why socialism is such a bad idea. So Obama can boast of a great success in taking American cars off the road and replacing them with foreign cars. Great going!

Buy American Folks!!!