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Government stimulus - auto purchases

30ashopper avatar
SoWal Insider
359 views1


A perfect example of how government stimulus really doesn't solve problems, it just causes anomolies in normal trends. In addition, it creates added debt, which in turn hurts rather than helps our long term prospects. The outlook for our entire economy is well represented by these graphs.

Calculated Risk: Light Vehicle Sales 9.2 Million (SAAR) in September

Replies

3
Beach Fanatic
#2


A perfect example of how government stimulus really doesn't solve problems, it just causes anomolies in normal trends. In addition, it creates added debt, which in turn hurts rather than helps our long term prospects. The outlook for our entire economy is well represented by these graphs.

Calculated Risk: Light Vehicle Sales 9.2 Million (SAAR) in September


The best "stimulus" the government can provide is to get out of the way and begin paying down the enormous debt they have run up.
scooterbug44 avatar
SoWal Expert
#3
I guess I don't see the problem - even with the incentives that had many more people purchasing a car last month (hitting a 12+ month high), this month's sales still weren't the lowest point within the last year.

Between back to school costs, the economy, and people buying cars during the incentive time I actually thought there would be much more of a dip.

P.S. Why does it say estimated? Do they not have the numbers in yet since Sept. only ended mid-week?
30ashopper avatar
SoWal InsiderAuthor
#4
I guess I don't see the problem - even with the incentives that had many more people purchasing a car last month (hitting a 12+ month high), this month's sales still weren't the lowest point within the last year.

Between back to school costs, the economy, and people buying cars during the incentive time I actually thought there would be much more of a dip.

P.S. Why does it say estimated? Do they not have the numbers in yet since Sept. only ended mid-week?

The money spent was borrowed, you and your kids are paying interest on it right now. What was the point if the net gain in car sales independent of stimulus was zero? What happens if the numbers next year are lower and the net-net is also zero? It's a net loss.

(the numbers for sept are estimates, final numbers will be revised down the road.)

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