I just sent the solution to our domestic automaker problems straight to Obama myself. All of this talk about our Government swooping in to save the day with a cool $25 billion going straight to these failing automakers is nonsense. It is, however, problematic because if all three fail it doesn't only bring down those companies, and their employees which is scores of thousands of people, but it's their suppliers as well. Those who manufacture parts, plastic, seats, after market parts, and so forth. Now you're talking about jobs going away in the hundreds of thousands and it will happen over night.
Grim thought, right? I have the solution. It is simple. So simple, in fact, that it is certain to work. I propose that on Obama's website they offer an instant rebate of $5,000 for any auto purchased at any Big 3 dealership. That's right, you want a shiny new Mustang GT? After you negotiate your price, get whatever dealer kickback and manufacturer rebate, you slap down your Government rebate coupon of $5,000. Now, let's put this idea to practical use. You might be in the market for either a Nissan Altima nicely equipped or a Chevy Malibu similarly equipped. Both are in the $22,000 dollar range. Now, if you were able to negotiate the $22,000 down to $20,000 then you slap down your additional $5,000 off rebate coupon, suddenly you have a loaded Malibu for $15k! You think that won't spur auto sales right now? Having credit trouble and can't qualify for a $15k loan? This will also solve that problem. You can currently purchase an entry level Chevy Aveo, which are in the classified ads currently for about $9950. You put down your fancy $5,000 rebate coupon and suddenly you now own a brand new car for $4950! How many of those gas sippers do you think you'd see on the road once this goes through? The last time I saw a new car under $5,000 it had a Yugo badge on it in 1987.
So, let's put the numbers to a quick equation, shall we? Let's say we sell 1 million cars in the next 12 months with this plan. 1 million cars plus $5,000 rebate per car equals a total of $5 billion dollars. So, this is a win win situation. We come in at 20 billion dollars under the 25 billion dollar request and we've suddenly moved a million cars which will certainly stimulate our economy. Unless someone can tell me why this won't work, I'm going to continue preaching it as the solution.
