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Today's Nuze

"Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others."

Ayn Rand

Nobody's listening.

INCENTIVES ARE A BAD THING, IF YOU ARE GOVERNMENT

By
Neal Boortz
@ March 30, 2009 8:35 AM
Permalink | Comments (9) | TrackBacks (0)

Chrysler .. $4 billion bailout recipient .. is raising some eyebrows. Why? Because the company is spending an average of $5,600 per vehicle in incentives to get people to buy. And now, Chrysler sales are increasing .. and people are upset because they believe that bailout money is being used to offer larger incentives to buyers.

Apparently Chrysler has always been one to give steep incentives, but those deals have only increased from a year ago. According to the Detroit News, "In February, Chrysler spent an average of $5,608 per vehicle on incentives, according to Edmunds.com. That compares with $3,681 from General Motors Corp.; $3,384 at Ford Motor Co.; $2,572 at Nissan Motor Co.; $1,682 at Toyota Motor Corp.; and $1,249 from Honda Motor Co."

So now, people are questioning the spending levels of Chrysler, asking whether taxpayer money is being used to subsidize incentives that other auto companies that didn't receive a bailout can't offer. In other words, is the government bailout giving Chrysler an edge in the market place.

So ... let's recap. You can't use bailout money to reward extraordinary employee performance, and you can't use bailout money to encourage people to buy your product. Oh ... wait! I get it! The only acceptable thing you can use this bailout money for is building electric cars.

The more government gets involved in our businesses and marketplace, the more screwed up things are going to become. Capitalism is under assault. The left, with full cooperation of the media, has done a wonderful job of convincing the American people that it was capitalism, not government, which failed here. The people are wrong - but not educated to the point that they can see it. A big thanks to the wonderful voters for putting the Democrats - and this Obama guy - in charge.



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What others are saying

  • My Chrysler-built truck is about to cross 200,000 miles
    No fading, warping or cracking pieces of interior trim. No squeaks or rattles. No mechanical parts failures with less than 150,000 miles on the odometer. No, I didn't just "get lucky" either. My family has owned six Chrysler products since 1991 -- and only one needed something repaired while still under warranty. (Even that car had nothing else go wrong with it after the fluke warranty repair.)

    "Poorly built" my foot.

    By the way, I will never even so much as sit down inside a Mercedes-Benz after finding out about some of their actions behind the scenes between 1998 and 2007.
  • Perspective
    First, AIG gets 170 billion while The auto industry splits 10% of that. The auto industry is one of the last industries in America. Lets just import everything from somewhere else and see how well that works.

    Second, Look at other countries where there is virtually no middle class. Is that what you really want? Drug lords intimidating the government. Out of control crime and poverty everywhere.

    If this is what you want, please DO, do it somewhere else. Ayn rand was an idealist hag whom I wish would have found gualts gulch and died there.
  • I want to know why....
    the government thinks they can even ask these questions of private companies?

    I don't care if they are recieving tax payer dollars (this is wrong and illegal) because they are private companies.

    If that is the case:

    Goverment why do you keep giving incentives to people for not working, making illegitamate children, smoking crack, becoming alcoholics, and uninformed advocates of the very programs that feed thier laziness. I mean if you want answers to this...I want my question about your welfare program answered.

    And don't give me "It's to help people on hard times and get out of a rut."

    I can easily turn that same answer back at you for every single bail out fiasco you have caused.
  • Huh? Bailouts give one competitor an advantage?
    You don't say! This is straight out of Ayn Rand! (Was "Atlas Shrugged" a warning or a script?) Of course bailouts give weak, inefficient, and profligate companies an advantage over those who remain efficient and competitive. Duh! If they don't give any advantage, then what would have been the point?
  • bailout and auto incentives
    How about we rename the Democratic party into the National Socialist Party
  • taxing bonus incentives?
    A friend of mine just bought a new dodge truck. The dealer sold him a $29000 list price truck for $14000 after rebates and incentives. I guess he should be prepared to pay a 90% tax on his $15000 "bonus" when Nancy,Barney,and Obama want to protect "taxpayers" money again from unreasonably incentives.
  • Electric Cars
    "Oh ... wait! I get it! The only acceptable thing you can use this bailout money for is building electric cars. "

    Wait... didn't they just say the Volt costs too much? So... using the bailout for that is a waste as well isn't it?
  • Yeah, but they're Chrysler built cars
    Worst fit and finish of the big three, sadly, in my experience. I really want to like the 300 and the Challenger, too.
  • Bailout & auto incentives
    I always hear people who have just bought a new car say "The dealership always wins. You can't win on the price, they make out." Incentives or not, they are selling cars for Heavens' sake!! While I'm at it, maybe the CEOs are responsible for mismanaging the auto companiess and maybe they should leave. But where does this administration get off telling them that?? And don't give me that "taxpayers money" crud.
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