Obama's Car Plan Will Devastate the Poor

Barack Obama proposed a plan to provide large credits to people who trade in old cars to buy new ones. While the plan will increase new cars sales (at a large cost to the American tax payer) it would be destructive to low income Americans.

Many Americans rely on used cars as their source for transportation. By provide a generous credit for trading in old cars the government will create a price floor for used cars. The result will be that millions of used cars will dramatically increase in value pricing out low income Americans. Many poor people will be unable to afford a car. The result could be devastating to individuals that need cheap cars live and work.