Stimulating Auto Sales

The automobile industry is in a real mess without a doubt.  Some of this is due to missteps taken by the big three, but one cannot deny that the current financial crunch is a major factor.  The big three have come to congress asking for help, but is it congress place to pick winners and losers?  I think not.  Not doing anything, however could leave the United States and for that matter the world in an even greater economic downturn.

What I am proposing is that the government stimulate the auto industry as a whole, rather than specific companies.  This is sort of a bottom up approach as opposed to curing the problem top down by making direct cash infusions into failing companies. 

Here it is in a nutshell: Give U.S. citizens a direct rebate of $1000 for the purchase of a new vehicle before Dec. 31, 2009.  The rebate would apply to U.S. manufactured vehicles.  To avoid the legislation being considered protectionist, allow for a $300 rebate for the purchase of foreign vehicles, provided that another $700 is matched by either the country of origin or the manufacturer.  Large cars would get the same rebate as small ones, which would actually create an incentive for the smaller car in terms of the percentage cost of the vehicle.  Example 1000 divided by 10000 is 10%  whereas the same 1000 divided by 30000 is only 3.33%.  Remember small cars help us fight imported oil.

This plan is designed to stimulate the industry as a whole and not pick winners and loser or micromanage the industry.  The estimate I am making for the cost of this plan is approximately $20 billion based upon 20 million sales times 1000 purchases.  This plan would benefit consumers as well as the industy  While $20 billion seems like a lot, the cost of a failed industry would be even greater.  I welcome your comments and suggestions.

LinkedIn meets Tinder in this mindful networking app

Swipe right to make the connections that could change your career.

Getty Images
Swipe right. Match. Meet over coffee or set up a call.

No, we aren't talking about Tinder. Introducing Shapr, a free app that helps people with synergistic professional goals and skill sets easily meet and collaborate.

Keep reading Show less

Can the keto diet help treat depression? Here’s what the science says so far

A growing body of research shows promising signs that the keto diet might be able to improve mental health.

Public Domain
Mind & Brain
  • The keto diet is known to be an effective tool for weight loss, however its effects on mental health remain largely unclear.
  • Recent studies suggests that the keto diet might be an effective tool for treating depression, and clearing up so-called "brain fog," though scientists caution more research is necessary before it can be recommended as a treatment.
  • Any experiments with the keto diet are best done in conjunction with a doctor, considering some people face problems when transitioning to the low-carb diet.
Keep reading Show less
Promotional photo of Lena Headey as Cersei Lannister on Game of Thrones
Surprising Science
  • It's commonly thought that the suppression of female sexuality is perpetuated by either men or women.
  • In a new study, researchers used economics games to observe how both genders treat sexually-available women.
  • The results suggests that both sexes punish female promiscuity, though for different reasons and different levels of intensity.
Keep reading Show less

Want to age gracefully? A new study says live meaningfully

Thinking your life is worthwhile is correlated with a variety of positive outcomes.

Surprising Science
  • A new study finds that adults who feel their lives are meaningful have better health and life outcomes.
  • Adults who felt their lives were worthwhile tended to be more social and had healthier habits.
  • The findings could be used to help improve the health of older adults.
Keep reading Show less