Monday, November 10, 2008

Better Cars for All

Although the time to change minds has passed, there are some things that need to be mentioned about my classmate’s article, “McCain’s Supportive Nature.” So let’s start with the first two plans mentioned. First there is McCain’s idea of the five thousand dollar tax credit to those who buy zero carbon emission cars. The other option is Obama’s seven thousand dollar tax credit to those who buy “progressive cars.” Now at first glance Obama’s idea sounds better, the problem is that is only at first glance.

Let’s start looking at demographics. The entire reason for Obama’s plan is to help those who are not as privileged to buy better cars. Let’s take a basic car that you see everywhere, a Ford Mustang. Its starting price is around $20,000. Now assuming this is a progressive car you can now take off the $7,000 in tax credit. You are still left with a $13,000 car. I don’t know about you but at that price I will still be looking at old used cars for half the price. So tell me how does that get more fuel efficient cars out of lots and into consumers’ hands?

However we need to now take a look at McCain’s plan to give a tax credit to people looking at a zero-carbon emitting car. As stated in the article not everyone could afford these cars. This would be geared to the upper class, those who buy new cars. Now let’s say that Donald Trump is looking to buy a new car. Then for the sake of argument say that he is trying to decide between two fairly equal priced cars. One a brand new zero carbon emitting car and a Porsche. Now everyone would go for the Porsche but say we give him a $5,000 tax credit on the zero carbon car. Suddenly he is buying a fuel efficient car instead of the Porsche. Now like many other higher class car buyers when the new model comes out he will want to buy it instead and sell his old one back. The used car like all the others gets trickled down to the lower classes. Thus more fuel efficient cars are put into the economy. We help our environment and lessen our dependence on foreign oil with less cost to the tax payers.

So even though when you first read about the two proposed plans it looks like one is better, only by completely thinking about them can you truly decide which one is actually better for our economy and environment.

No comments: