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Tuesday, March 06, 2012

The Greatest Flop In History

I've always looked upon this campaign slogan from 1928 with admiration:

"A chicken in every pot and a car in every garage."

The message?  Prosperity.  The American Dream.  Economic growth.  Freedom from want.

Somehow I don't think this is what Herbert Hoover had in mind:
Too Many Volts, Not Enough Buyers, Especially At That Price
Investor's Business Daily

Chevrolet is shutting down production of the Volt, its electric car. Not even generous federal subsidies are enough to keep this trendy environmentalist flop on the road.

General Motors announced late last week that it will discontinue making its plug-in hybrid between March 19 until April 23 "to keep proper inventory levels."

In other words, it can't sell enough of the darned things to justify continued production.

Through the end of February, Chevrolet had sold a mere 1,626 Volts though it had planned to build 60,000 of them this year and sell 45,000 in the U.S. market.

The Volt, the novelty car Barack Obama said he would buy and drive himself once he left office, is more than just an automobile. It is the product of a hysterical political agenda.

Some believe the Volt isn't selling because, with a sticker of $40,000 and up, it's overpriced. It costs about twice as much as the Chevrolet Cruze, which is essentially the gasoline-powered version of the Volt.

But it could actually be underpriced, and woefully so.

A Mackinac Center report says the real cost of the Volt is closer to $300,000. That includes the suggested retail price, the known $7,500 federal subsidy and another $250,000 in taxpayer-funded state and federal incentives for each car. [link]
The most glaring difference to be found between free-market capitalism and the kind of socialist approach to economic development that Barack Obama has put forth can be seen by comparing that campaign slogan from 1928 with the effort of our clueless president to force growth with taxpayer dollars.

As the Chevy Volt debacle clearly shows, government can't coerce consumer decision-making, even when it throws hundreds of thousands of dollars at each commodity it wants sold.

"A car in every garage"?

If Obama keeps wasting our precious income on foolish pipe dreams like the Volt, we won't even have the garage ...