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  • Auto Loans for Everybody!

    George Mason University economics professor Russell Roberts has a line by line rebuttal of President Barack Obama’s auto sales pitch from yesterday. Read the whole thing, but we liked this paragraph the best:

    Therefore, to support demand for auto sales during this period, I’m directing my team to take several steps. First, we will ensure that Recovery Act funds to purchase government cars go out as quickly as possible and work through the budget process to accelerate other federal fleet purchases as well. [We will of course only be buying the cars of the loser incompetent companies, Chrysler and GM. No Fords. That would be unfair. They're doing so well.] Second, we will accelerate our efforts through the Treasury Department’s Consumer and Business Lending Initiative. [Yes, let's return to the days where your personal situation didn't affect whether you got a loan. Loans all around!] And we are working intensively with the auto finance companies to increase the flow of credit to both consumers and dealers. [More and more and more and more loans. Can't have enough loans. That's how we got into this mess. Not enough loans!] Third, the IRS is today launching a campaign to alert consumers of a new tax benefit for auto purchases made between Feb. 16 and the end of this year — if you buy a car anytime this year, you may be able to deduct the cost of any sales and excise taxes. This provision could save families will cost taxpayers hundreds of dollars and lead to as many as 100,000 new car sales.

    Posted in Economics [slideshow_deploy]

    13 Responses to Auto Loans for Everybody!

    1. Franklin's Lock says:

      This is completely insane. None of this is going to work. After the government is done with these companies, the government and unions will be running these companies, not stockholders, into the ground. Ford is going to kill them in market share and profit.

      Thank goodness I own Fords.


    2. Ozzy6900, CT says:

      Let me say it again:


      Why pay your bills when you can buy into credit!

      Why end the fun, this got us into trouble before and it will get us there again. Then President Obama can control your every move because he will hold all the liens, deeds, and companies!

      Hooray for the United Socialist States of America!

    3. Ron, Derry NH says:

      The question begs to be answered. What the heck are they teaching in colleges these days?

      What college courses did Barrack o Marxist take to make him think coercion, false hope, unkept promises, extortion, theft, abuse, corruption and forced debt were the ways of America?

      I'll take my deals from a business man who wants my business but not a politician that is stealing it from my neighbor like a thief in the night.

    4. Mary says:

      All that Obama is doing will lead to government control of what kind of car we drive. His administration is hell bent on doing away with fossil fuel (notice the land grab – that will not allow drilling – they just passed). Next it will be banning all new drilling off our coasts.

      We will be forced to drive yogo type electric cars because oil prices will go up and the car companies can't compete with the government car companies.

      I mourn for a country that once seemed so promising that now has a majority of citizens that want handouts, bailouts and freebies. We will all be slaves because of their stupidity.

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    6. Kelly, Saxonburg Pa says:

      Will this ever end? I am attending the Tea Party on Tax day in Pittsburgh and hopefully the voice of the people will soon be heard. Although I don't know how it's possible for Obama to hear us over the sound of his "advisors" whispering in his ear all the time! God Bless the United Patriots of America!

    7. Jerome Zacny says:

      Mandatory loans to those who don't qualify. Why not? It seems to have worked so well in home financing. We won't even need the usual suspects (Barney Frank, Chris Dodd, Maxine Waters or Nancy Pelosi) to support the issue, since the government can easily dictate to the loan officers at banks that took bailout money that they will be required to make such loans. That, or be fired.

      Tax credits to those who buy new cars? Sure, why not? Isn't it our patriotic duty to pay more in taxes to support these subsidies?

      Where did Mr. Obama get his education and training in economics? Wait a minute, I remember now. He didn't have any education and training in economics, unless you want to count his stint as a Democrat legislator in the State of Illinois, the model of governmental efficiency.

      Studying at the foot of the master, Mr. Geithner,(the man who couldn't figure out how to pay his own taxes) Mr. Obama has learned that the road to financial recovery is spending our way out of poverty. Sounds reasonable, doesn't it? Kind of like drinking your way out of alcoholism.

      Mr. Obama promises to cut the deficit in half in four years. But which deficit, the one that exists today; the one that is projected today to exist in four years; or the one Mr. Obama will tell us would have existed, had he not cut it in half?

      Another question inconveniently arises, that being, "HOW will that deficit, whatever it is, be cut in half? Seemingly, the only way to do that is either through massive tax increases, or through massive cuts in government spending. Call me crazy, but from this perspective it appears that government spending is currently increasing, and rather dramatically at that. Based on Mr. Obama's plans to "reform" healthcare and education, it looks like the future is going to include a lot more government spending. That said, it appears the only course of action left with which to cut "the deficit" in half would be to dramatically increase taxes.

      Now it's hard to be certain about this, times being so good and all, but there is a possibility that those of us left with jobs may not be as enthusiastic about massive tax increases as first imagined. On the other hand, Mr. Obama has promised not to increase taxes on families making less than $250,000 per year. So those massive tax increases will only affect about 5% of the working population, and of course those big evil corporations and businesses, you know, the ones that you and I work for, right? Of course, in keeping with tradition, businesses and corporations will not pass along those massive tax increases in the price of their products that we all must buy, right? Businesses will just absorb those additional costs of doing business. One could suppose that businesses would offset those costs buy laying off more employees. But then, those losing their jobs won't have to worry about tax increases, since they won't have any money to tax or spend.

      The cap in trade strategy should also work well, with all the additional taxes energy producers will pay, the deficit should be cut very quickly. Of course consumers can counter the effects of those tax increases and higher energy prices buy reducing their reliance upon energy, perhaps down to zero. Problem solved.

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    9. Frank, Highlands Ranch - CO says:

      Many of us laughed at the emails that proposed that the Government divide up the bailout monies and give tax payers their share. I believe more each day that if indeed we were given $30000 each we would have paid off our debts (banks get money) and started purchasing again. For myself and my family we are focused on getting out of debt and HOARDING cash and BULLETS!

    10. Jim - Utah says:

      Way to go Jerome! You covered just about everything except for DoD spending. Under his current thinking, we don't need all these superior weapons, we aren't going to be THE super-power anymore anyway! When Kim Il launches his ICBM, we can just hit him with our UN sanctioned wet noodle.

      I used to be deeply concerned, now It's getting very scary with danger just behind the door.

    11. molly, colorado says:

      Makes me want to sell my GM vehicle and buy a Ford.

    12. John Clancy says:

      There will be taxdayteaparty.com throughout the nation on April 15. Find one near you. We'll have signs like "Don't tread on me." This day will be the beginning of a groundswell, even though the left media will play softball. Our gatherings will be as Americans, not members of a party. Even so, we'll be looking to the elections in 2010. We don't want CHAINS for us or our children. Find one near you.

    13. BlootadualF says:

      ok, my mind is blown from all of the "post bankruptcy loan" sources online! theres just too many and im not going to run my credit that many times

      to try and find the best rate, lowering it further, so i need your help… ok, i was discharged from bankruptcy a year ago. since then i have two

      credit cards for about a year that are NOT maxed and are paid on more than required. however, my credit score is 586. im looking for the lowest

      possible interest rate, for my credit history( i know im not going to get prime rates). im just looking for a REPUTABLE, known place that will almost

      guarantee me an auto loan. i want to be one and done. lol does anyone know of a good post bankruptcy buying a car with bad credit source? explained here.

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