Friday, July 31, 2009

Future Clunkers

As I understand, the plan for GM is to put a few billion of taxpayers' dollars on the line in a major retooling effort to build new fuel efficient and alternative energy cars.

Before the retooling effort, we are engaged in a massive "Cash for Clunkers" program that will flood the economy car market with the current generation of economy cars.

In effect, the taxpayer is currently in the process of undermining its big investment in retooling.

It appears that Obama is doing exactly what happened in the Carter years. We are dumping tons of money into alternative energy. The inept government is flooding the market in ways that is likely to undermine the very market they are trying to establish.

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