Randomly Noted

Bravo!

Would someone explain why the media & the public invariably talk about car and home “sales” as good-for-America things, as opposed to health and education “costs” which are a drag on the economy? Should it not be the opposite?

It is an across the right-left political spectrum thing, by the way. With some possible exceptions at the extreme center maybe.

The cars being traded-in in this program must be worth less than $3500 or $4500 in order for it to make financial sense. As a result, the cars being traded are older cars – I would guess generally ten years old and older. I know I was considering trading in a 1994 Ford Explorer that’s seen better days. That’s a 15 year-old car. And by the way, while it’s good to save for the future and change to a more healthy lifestyle, if the US consumer, who represents about 70% of our economy, decides to stop spending, how do you think we’re ever going to get that “rapid U.S. economic revival” that you’re looking forward to?

The basic observation that we, as a society, replace our cars more often than is necessary or financially advisable may be quite valid. Some of the author’s specific comments are spot on.

There are a lot of individuals, however, who have already put off replacing their old vehicles for too long. The fact that the AVERAGE American’s car doesn’t need replacing right now doesn’t mean that there aren’t some people who for whom a new car makes sense.

I love it when an advertising-driven media representative chastises those who “buy” their ads. Do tell us more–preferably something about stupid people who buy newspapers!

One has to wonder, just how will all these buyers pay for their new cars? They are just piling up more debt. Perhaps we can buy their cars along with their homes at the next bankruptcy sale.

Thanks to “cash for clunkers” we’ll have more to spend to increase our collective waistlines so our unfunded health liabilities can grow too.

“let’s not revert to our old over-spending ways that led us to purchase McMansions with eight bathrooms and three-car garages.”

that is the only economic model America knows.

I’m retired, have a 15 year old clunker, a paid off mortgage, and cash in the bank. I’ve been tempted to buy but realized it was guided more by habit than necessity. Besides I don’t want to be accused of accepting bailout money when I really don’t need it.

If the health care bill passes I might avail myself of the cash for codgers program.

I agree with the author – too many cars are a bad thing. With the safer, longer lasting cars of today, it is wise for americans to focus on the important expenditures – college, healthcare, retirement. I do disagree with labeling the wii as bad for kids, like cars are bad for adults. It has been proven interactive video games, especially those played on the wii, are actually beneficial and help increase cognitive ability. Video and computer games are going to make the latest generation of Americans smarter than the Gen X TV generation that came before it. If there is an industry that needs to be vilified, lets start with high fructose corn syrup.

Good points in the article. I agree that we need to relearn how to manage our finances and learn to identify the luxury from the necessities.

As for F Pait… People talk about car and home sales as good for America because those industries employ millions of people and create wealth and hold value over time.

Where as the health system is a cost which does not create wealth. And if Obama gets his way it will be a huge drag on the economy!

I do not see education as a drag on the economy. I’ve invested over 30k in my education. I believe investing in yourself only increases your value to society. Education will never drag down the economy unless people choose to not pay back their loans.

There’s a presumption in this that may not be true…

The Journal ran an article in which one auto dealer stated that a disproportionate share of “Cash for Clunkers” buyers were affluent people, paying cash to replace an aged third or fourth car. If that’s true, then Ms Stern’s objection is unfounded — and the waste of taxpayer dollars is even more troublesome than it first appears.

Oh, for joy. Now we get to be lectured about how we spend our money. Shall we pass laws to force people to spend, or save, wisely?

Face it, there are folks out there who are financially impaired, and there are those who are smart with their money. The impaired don’t deserve the same outcome as the smart ones.

And, you won’t be able to legislate the outcome. Unless you plan on taking from the smart and giving to the stupid.

Wait, that’s already happening. Who were the smart ones, again?

Happiness is just a purchase away…or is it? Let’s face it, we’ve really hyped-up that “solution, ” particularly over the most recent decades. It worked, economically. But the global environment has changed.

Our culture will be evolving, and with some pain. Consumer behavior will continue to move toward a more confident, deliberate and practical perspective. Really, how much extra stuff do you have? To those who really need a new car, how about considering a clunker upgrade without the post-rebate payments?

The government should not be subsidizing car companies period ! GM and Chrysler should have failed. Ford would have been the victor and gained the market share that GM and C lost. It would have eliminated 2 manufacturers. That’s what should’ve happened. That’s how capitalism is supposed to work. Toyota and Honda and F could have split up the market and things would have worked out fine.

TJ,

The healthcare business also employs people, and besides it creates a good with real value – better health. Health is not only useful in itself, but also counts as an investment in labor productivity. I cannot say the same about larger houses and bigger, newer cars. They contribute to employment, and to growing American waistlines and consumption of fossil fuels, but the value to society is dubious.

Too many commentators talk about education as a cost the same way you talk about health – they fail to recognize that both are growth industries that employ many people and bring clear rewards to consumers and to society in general.

My 1991 Subaru had over 140,000 miles on it: it needed replacing badly. I am using the cash for clunkers program to subsidize a necessary purchase. Please stop lecturing all Americans out there and look after your own wallet.

With the econony in the “dumps”, job losses on the rise,uncertainty in the Whitehouse. This looks a lot like the housing bubble. People who can’t afford to buy a car. How many will get reposessed when your job is lost or a much larger protion of your income is gobbled up by taxes and don’t get me started with health care. I’ll keep the clunker.