Yesterday Barack Obama decided that he wanted to throw more money at another problem. So he unveiled his plan to spend $2.4 billion for electric vehicle development. The plan also gives a $7,500 tax credit to people who buy plug-in hybrid vehicles.

So what's the problem? The problem is that there isn't a market for these vehicles. As of right now, hybrid cars only represent 2% of US vehicle sales, and it is deeply unprofitable for car companies. Just wait until the people buying those hybrids (and I have one myself) have to replace the batteries. You're going to hear howls of outrage then. My guess? The government will come in with some taxpayer-funded program to help people replace batteries in their hybrids. What fun.

In short .. Obama wants to give them money anyway to make cars that people don't want to buy. According to the LA Times:

Last month, only 15,144 hybrids sold nationwide, down almost two-thirds from April, when the segment's sales peaked and gas averaged $3.57 a gallon. That's far larger than the drop in industry sales for the period and scarcely a better showing than January, when hybrid sales were at their lowest since early 2005.

Yet automakers believe they have little choice but to make more hybrids. Though car buyers are losing interest, politicians are pushing them as key to reducing U.S. dependence on foreign oil and limiting the global-warming gases that cars emit into the atmosphere.

Did you know that the auto parts industry is also getting a bailout? Just another $5 billion of your tax dollars. No matter what happens to the recipient car company, the money will be paid. The payment of new bailout money to auto parts manufacturers is your sure sign that more bailout money is on its way to GM and others. BOHICA