Doctor Zero did some math and finds that GM's new Chevy Volt just doesn't add up.
The sticker price is $41,000. However, with federal subsidies, you could pay as little as $33,500. Additional subsidies provided by the state of California could knock it down even lower, for residents of the Golden State. So what’s the price?
$41,000, of course. The subsidies just mean you don’t pay all of it. The utterly bankrupt federal government takes money from other taxpayers, and uses it to discount your purchase. Since California is teetering on the edge of total collapse, and may well require federal bailouts in the near future, taxpayers across the country could end up paying additional sums to support Volt purchases that happen to occur within the state of California. These transfer payments are mixed into the thickening concrete surrounding the American economy, making it just a few inches deeper.
I made a chart to illustrate the point he is making:
|
Sticker Price |
$41,000.00 |
|
Federal Tax Credit |
-$7,500.00 |
|
Purchase Price |
$33,500.00 |
|
|
|
|
Initial Production Run |
10,000 |
|
|
|
|
Federal R&D Subsidies |
$400,000,000.00 |
|
Subsidy Per Vehicle |
$40,000.00 |
|
|
|
|
Actual Cost Per Vehicle |
$81,000.00 |
|
|
|
|
Car Buyers Pay |
$33,500.00 |
|
Taxpayers Pay |
$47,500.00 |
And who would pay $81,000 for this $18,000 sedan with a battery? Why, the US taxpayer of course!
The Volt would not exist at all, if the government had not performed an elaborate voodoo ritual which involved burning $50 billion in taxpayer cash and sprinkling the ashes over the United Auto Workers union. This raised General Motors from its free-market grave, and placed it at the service of those who killed it. How much of this fifty billion should be divided among the Volt production run to calculate its true, final value?
The purpose of seizing money from taxpayers to finance the Volt was preserving the jobs of union members politically connected to the Democrat Party.
And there we have it. The root of all this mess is votes for Democrats, just like the housing meltdown. Go figure. Is there no end to how many things they can fuck up?

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