Sometimes I feel there is little to like about the American auto industry. It is a crony institution from top to bottom. From senior management to the union line guy everyone has an angle. Consider why it is that the price of cars always goes up. Why don’t TVs do this? Or computers? Cars today are just rolling computers with seats, and yet every car goes up in price each year while other types of technology generally trend down over time. I submit that it is because the auto industry is structured poorly (from the consumer perspective) and dealerships are a classic example.
I have to admit, I once bought a new car. I was in my mid-20s. I had no children. I still didn’t know the fun of a mortgage. The car was blisteringly fast and I like cars which go fast. So I bought one fresh and new. I shouldn’t have.
Earlier this year the Treasury decided to sell off the remaining position it (and the taxpayers) had in Government Motors at a $10 billion loss.
“I felt like a guy in the boiler room of the Titanic, desperately bailing to keep the ship afloat for a few more hours while the DOJ attorneys complained from their first-class cabin that their champagne wasn’t properly chilled.”
The productive have left the Motor City. After years of being squeezed they left. Or as Ayn Rand might have said, they shrugged, and moved to Florida.
One just can’t run a city that way. Can’t run a country that way either.
This video comes from The Telegraph out of the UK. It shows a city which is in decay, which is dying, which is in need of new solutions.
I am a big fan of used cars generally. I just can’t bring myself to buy a new one given the immediate depreciation which occurs once I wave goodbye to the salesman. It’s just too painful for me. I prefer to buy my cars used.
In the wake of the president’s triumph, the crony capitalists knew they had to come and kiss the ring. Today they did that.