CARS & The Economy

It has been a while since I have blogged. Things happen in life that keep one busy. And during this time, the world has not changed much, but at the same time it has. Thus, there are numerous things I could write about, but I will start with a short piece on an issue I cannot get a grasp on, especially as a sociologist. This is the Cars For Clunkers Program.

It is not that I think the program was inherently bad, but I am left asking what now? On the positive side the program enabled a boost in the auto industry, which helped foster the economy. We heard reports that auto workers laid off were brought back to work because of the demand in cars. Environmentally the program offered benefits by taking fuel guzzling cars off the streets. And it helped consumers to an extent in offering a deep discount for a new efficient car.

So, a few questions here. Relating to my last point, how did people afford new cars in an economic recession? Even with the deep discount, people are loosing their houses and cannot afford health care. So, maybe this was aimed at people who had some extra cash. Yes, in the end run it does help the economy, but at the same time, did it help people who needed more efficient cars the most? Maybe this a mute point in regards to the basis and intent of the program, but nonetheless, it still a question I had. Thus, I was surprised that the program was so popular with so much hoopla regarding how Americans, for the first time in ages, were not willing to spend during this recession.

But onto what I consider the more sociological aspect of my confusion with the program. What happens now? Was this just a band-aid approach? What did the program solve? First, it seems that our car market is already over-saturated. Second and relating to the first, what happens to this industry now and all the industries that relate? Now are these workers looking for jobs with skills that are not highly sought in these troubling economic times? Will this mean lay-offs again? And if this happens, how does this affect the economy?

I do not purpose that I am economist and thus fully understand the situation from an economic view. But as a sociologist, I do wonder if this problem is not just about this recession, but the industry as a whole that had issues before the current times. Roger and Me comes to mind in thinking about this.

As I discussed this issue with others, I proposed that the stimulus money could be used to retrain auto workers in another industry. Yet, others state that that would be difficult in these hard times when most industries seem to be cutting jobs. But there has to be a way to deal with this issue and the economy in general. People are truly suffering. We need to think outside the box. Would more investment in public transportation and thus, training for jobs in this area help? Yes, this will take a large shift in American's attitudes, but something has to change.

I do not claim to know the answers and like many Americans, I feel frustrated by the bleak outlook we are given about the economy. We have hope and then told more negative news about the economy. I think the adage if you are not angry, you are not paying attention is true about the current economic times. Yes, we need to have hope, but we also need to be diligent in finding solutions. Things will take time, but we need to understand people's lives are affected.