- The government can institute a tax credit to anyone who buys a domestically built car. If Congress passed such an incentive that reduced a families net income by 50% of the purchase price and allowed the person or family to take that credit over three years, there would be more people wanting to buy a car then there are cars available.
- The government can set up a Fannie Mae type office for the purpose of guaranteeing auto loans based on certain flexible criteria.
How the Auto Industry Bailout Affects Marriages
As I write this, our Congress is considering various ways to financially bail out the American auto industry. The approach Washington, DC is taking towards this humongous problem is similar to how most marriage counselors approach marital problems. Rather than address a problem’s source it is easier to address a problem’s symptoms.
The actual problem the automakers are having for instance, is that no one is buying their cars. If people started to buy their cars they would have cash flow and banks would start lending them money for future investment. The real problem that exists is that people aren’t buying cars because they don’t have enough money, credit or enough incentive. The government can cure two of these problems very easily.
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