Thursday, August 27, 2009

Cash For Clunkers Fails To Reward Unions

Backlash Against GM, Chrysler For Taking Taxpayer Dollars

In what can only be described as a major blow to “Government Motors” (GM) and Chrysler Corporation, the “Cash for Clunkers” program failed to produce a single top-ten best seller from either car maker.

The top selling models were:
  1. Toyota Corolla
  2. Honda Civic
  3. Toyota Camry
  4. Ford Focus FWD
  5. Hyundai Elantra
  6. Nissan Versa
  7. Toyota Prius
  8. Honda Accord
  9. Honda Fit
  10. Ford Escape FWD
To add insult to injury, five of the ten “most traded in Clunkers” were  Chevrolet’s (GM) and Chrysler’s (Jeep/Dodge.)

Top ‘Cash for Clunkers’ Trade-Ins
  1. Ford Explorer 4WD
  2. Ford F150 Pickup 2WD
  3. Jeep Grand Cherokee 4WD
  4. Ford Explorer 2WD
  5. Dodge Caravan/Grand Caravan 2WD
  6. Jeep Cherokee 4WD
  7. Chevrolet Blazer 4WD
  8. Chevrolet C1500 Pickup 2WD
  9. Ford F150 Pickup 4WD
  10. Ford Windstar FWD Van
While Ford by itself occupied five of the most traded-in clunkers, they were also in the top ten selling models, something GM and Chrysler can’t say.

No doubt backlash against both GM and Chrysler for taking billions of dollars of taxpayer money was at the front of buyer’s minds in choosing Toyota, Honda, Ford, Hyundai and Nissan models first.

Gotta love it when American’s vote with their dollars and manage to strike a blow at both the Obama Administration for seizing control of GM and Chrysler, and repudiate the Union’s who messed up these once great car companies at the same time.

Federal Reserve: Real U.S. Unemployment Rate at 16%

The real US unemployment rate is 16 percent if persons who have dropped out of the labor pool and those working less than they would like are counted, a Federal Reserve official said Wednesday. 

"If one considers the people who would like a job but have stopped looking -- so-called discouraged workers -- and those who are working fewer hours than they want, the unemployment rate would move from the official 9.4 percent to 16 percent, said Atlanta Fed chief Dennis Lockhart.

He underscored that he was expressing his own views, which did "do not necessarily reflect those of my colleagues on the Federal Open Market Committee," the policy-setting body of the central bank.

Lockhart pointed out in a speech to a chamber of commerce in Chattanooga, Tennessee that those two categories of people are not taken into account in the Labor Department's monthly report on the unemployment rate. The official July jobless rate was 9.4 percent.

Lockhart, who heads the Atlanta, Georgia, division of the Fed, is the first central bank official to acknowledge the depth of unemployment amid the worst US recession since the Great Depression. Lockhart said the US economy was improving but "still fragile," and the beginning stages of a sluggish recovery were underway.
"My forecast for a slow recovery implies a protracted period of high unemployment," he said, adding that it would be difficult to stimulate jobs through additional public spending.

Unemployment Chart

Lockhart noted that construction and manufacturing had been particularly hard hit in the recession that began in December 2007 and predicted some jobs were gone for good.  Prior to the recession, he said, construction and manufacturing combined accounted for slightly more than 15 percent of employment.  But during the recession, their job losses made up more than 40 percent of all US job losses.  "In my view, it is unlikely that we will see a return of jobs lost in certain sectors, such as manufacturing," he said.

"In a similar vein, the recession has been so deep in construction that a reallocation of workers is likely to happen -- even if not permanent."  Payroll employment has fallen by 6.7 million since the recession began, more than 5 million of which have occurred since Obama won the election in November, 2008.

Editor’s Note: See The Truth About The Obama Economy for correct interpretation of when the Recession really began.  This spin about the recession being Bush’s fault has to stop sometime.  Democrats seized control of the Senate in 2007 after winning the 2006 election.  Their first Federal Budget took effect January 1, 2008 which coincides perfectly with the first monthly job-losses that began in … January 2008.  The Democrat controlled Congress and their wild spending and explosive Federal Budget are responsible for creating and furthering this recession.  Bush’s last Federal Budget had a $400 billion dollar deficit, all approved by the Democrat House & Senate (including Barack Obama, who voted in favor.)  The Federal Budget Deficit for 2009 is now approaching 2 TRILLION dollars, all of which is being spent by Obama and the Democrats.  This recession won’t end until Government spending is stopped.

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