Congress

-By Warner Todd Huston

On August 13 I posted a piece wherein I facetiously asked “Why does Obama hate the poor?” Then I pointed out that the cash for clunkers program was likely to cause the price of used cars to skyrocket in the near future. I also asserted that the reason this will be so is because Obama’s clunkers program was set to destroy hundreds of thousands of otherwise perfectly functional cars all of which would have ended up on the used car market were it not for Obama’s interventionism.

It really is the most simple principle of supply and demand, so simple a ten-year-old could follow it — not that any Democrat is smarter than a fifth grader.

Here is what I wrote in August:

There’s little doubt of what will happen later in the year as cash for clunkers expands. Many thousands of lower end, used cars will be entirely eliminated from the market place as the government destroys them after they’ve been redeemed via that cash for clunkers program.

These will be the many thousands of cars that will not be available for people that have less than $10,000 with which to buy a car because so many perfectly good cars that would have ended up on the used market will have been destroyed by the government. Because all these cars have been artificially removed from the used car market — and all at once at that — there will be thousands fewer cars left for sale. Worse, the ones that are left will rise in price as there will be far more customers for them than units for sale.

This means that many millions of people that make less than $50,000 a year will now not be able to afford to buy a car at all.

I noted that Obama was condemning lower middle class folks to going without a car. He is also dooming many used car dealers, mostly small businesses, to failure because they won’t be able to get stock to sell not to mention for for being priced out of the market.
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Why Does Obama Hate the Poor? Part Two”