- #1
airborne18
- 22
- 0
One factor in economic recovery is that demand for durable goods and large ticket items eventually builds up and helps propel a recovery. There are a few metrics, like average age of cars on the road and such.
The problem with all of the various incentives, like the credit for energy effiecent appliances that basically made them almost free is that they temper the demand.
The 8000 cash for clunkers burned up a lot of demand from the system, and so did the home buyers credit for homes.
Basically the government played their hand early, and now they have very few incentives left. The worst part is that built up demand is deflated, on the cheap.
It could be argued that it slowed the decline, but fact lies in that consumer demand has been depleted for durable goods.
http://www.bloomberg.com/news/2010-09-01/gm-s-total-u-s-vehicle-sales-fell-24-9-last-month-more-than-estimated.html"
The problem with all of the various incentives, like the credit for energy effiecent appliances that basically made them almost free is that they temper the demand.
The 8000 cash for clunkers burned up a lot of demand from the system, and so did the home buyers credit for homes.
Basically the government played their hand early, and now they have very few incentives left. The worst part is that built up demand is deflated, on the cheap.
It could be argued that it slowed the decline, but fact lies in that consumer demand has been depleted for durable goods.
http://www.bloomberg.com/news/2010-09-01/gm-s-total-u-s-vehicle-sales-fell-24-9-last-month-more-than-estimated.html"
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