With unemployment rising, home prices crashing, an unstable stock market and talk of a double-dip recession, there is good news for one industry (besides red ink manufacturers, that is.) The used car industry is “enjoying” a surge in the bottom line for their wares. Prices have jumped 10% overall, and by a third in some cases. Thank you, Cash for Clunkers for destroying billions of dollars in assets last year. People still can’t afford new cars and now, they can’t afford used ones.
Ed Morrissey, over at Hot Air, noted:
As predicted last year, the people most hurt by the price increases are those who can least afford them. The used-car market usually attracts people who need transportation on a budget, who cannot afford to buy new. By destroying a quarter’s worth of trade-ins in three weeks and permanently taking them off the market, the Obama administration has forced an artificial inflation by supply restriction. Moreover, they did so by subsidizing new-car sales that would have occurred anyway, eating up three billion dollars in taxpayer money.
In other words, the White House spent $3 billion to make used cars more expensive for working-class families. Nice work.
Feeling left out? Never fear – gubernatorial candidate Peter Corroon recently proposed Utah’s own version of Cash for Clunkers so you too can feel the pain. He neglected to mention how he planned to pay for it.