R
randude101
The old rule of Supply and Demand is a very Natural Law. If you have enough money you buy it, of not you don't. Seller has to make adjustments until it gets sold. If it cost too much to make then your product is not viable and you stop producing it.
Government Intervention is Not Natural, whether it be subsidies or bailouts or whatever. It is an artificial way to sustain a business of supply and demand.
So the government gives a major employer (voters) money to sustain itself. No reductions in salaries or parts, just more capital to continue a business-as-usual that has proven to fail. So those that are still working because of this bailout are okay financially, and maybe they can afford a car, and feel a responsibility to buy one in fact. However, you still have a bad economy, one where a family may try to get another year out of an older vehicle. The sticker on the new car is about the same as before, which is too high as well. In a short time the businesses that were bailed out are in trouble again, poor sales. What do you do then? Bail them out again?
Government has no business getting involved with nature, like supply and demand.
Government Intervention is Not Natural, whether it be subsidies or bailouts or whatever. It is an artificial way to sustain a business of supply and demand.
So the government gives a major employer (voters) money to sustain itself. No reductions in salaries or parts, just more capital to continue a business-as-usual that has proven to fail. So those that are still working because of this bailout are okay financially, and maybe they can afford a car, and feel a responsibility to buy one in fact. However, you still have a bad economy, one where a family may try to get another year out of an older vehicle. The sticker on the new car is about the same as before, which is too high as well. In a short time the businesses that were bailed out are in trouble again, poor sales. What do you do then? Bail them out again?
Government has no business getting involved with nature, like supply and demand.