Hot Air posted an article Sunday about the Chevy Volt. The Volt is Chevy's new electric car that sells for $41,000. The article states, "However, with federal subsidies, you could pay as little as $33,500." Is it time to ask, "Who pays for federal subsidies?"
To give you an idea of how well the government runs business, the article explains:
"Almost four hundred million dollars in federal subsidies were pumped directly into the design and production of the Volt. The initial production run consists of just ten thousand units, with 45,000 more planned for 2012 if sales are good. This would add just over $7200 more in taxpayer subsidies to each Volt produced over the next two years. Since 2012 production will be scaled back if early sales are disappointing, it might be more logical to add the subsidies to the first 10,000 units only, which would leave early adopters outside of California paying $33,500 for a car which actually costs $81,000 per unit, with taxpayers picking up the remainder. It's actually even worse than that, because GM expects to lose money on every Volt sale. Those losses will be spread among other GM products, or perhaps wiped out with further taxpayer subsidies."
The article concludes:
"The number of Chevy Volts desired by those free people is zero. By government decree, there will be up to 55,000 of them gathering dust in the far corners of three-car garages by 2012. The government didn't subsidize this boondoggle. The "government" doesn't subsidize anything. You do.Imagine what the taxpayers of America might have done with the billions taken away from them to produce those cars, divide that lost value by 55,000, and you will begin to comprehend the true cost of a Chevy Volt."
In the attempt to produce a 'green car', the government has again misspent large sums of taxpayer money. The fact that the car will sell for slightly less than half of what it cost to make it is typical of a government business decision. The Obama Administration has very few people in it who have business experience. They need to leave the running of businesses to the people who know how to run them.
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