That’s the sound of glass shards from the broken window hitting the mud. Much has been written on Cash for Clunkers so I do not want to reprise all of it here. I just wanted to close the year with a reminder to readers about the message behind the title of this website.
The latest report from the Cash for Clunkers program indicates that 677,875 Clunkers vouchers were cashed in. What this means is that there were nearly 700,000 cars destroyed (that were less than 25 years old and getting less than 18 mpg) for the sake of “exchanging” them for nearly 700,000 newer and more fuel efficient cars. Now, I don’t want to analyze whether this program was actually stimulating or not (it seems to have simply moved up the purchase of cars and done nothing to the overall level of car buying, or jobs in the auto sector), I just want to remind readers of two pieces of information that are never reported on by the official “CARS” czars.
First, as Bastiat reminds us time and time again, destruction is not “good” for the economy. Let’s suppose you want to totally ignore the tax implications of the CARS program for now. Remember, the CARS program cost taxpayers $2.85 billion dollars. So let’s assume that number is worth spending, and it generates no economic problems to collect or administer. If the goal is to get 700,000 new cars out of the hands of dealers and into the hands of consumers, which would seem to be “better” for the economy?
- Getting 700,000 new cars into the hands of people while destroying 700,000 existing cars. There is thus no net change in the number of cars on the road (in fact I can argue it will be less) and therefore little change in consumers’ overall ability to get from Point A to Point Q (they may be more comfortable in their new cars however).
- Getting 700,000 new cars into the hands of people while NOT destroying another 700,000 existing cars. There would therefore be 700,000 more cars on the road and a much larger increase in consumer well-being from the program.
It would seem to reasonable people that the second option is more desirable (again, assuming that the 700,000 new cars are a total free lunch that are not paid for by taxes, which they are not). On what sort of a bizarre assumption would you be led to believe that destroying older cars and seizing their engines be a good idea? Clearly those cars had some value. It would be better and cheaper for the average American to buy used cars at Zemotor.
I do not have the data – but clearly people were turning in cars that were valuable. The Clunkers vouchers averaged $4,204 per transaction. So it is entirely plausible that consumers would be willing to trade in cars that are worth up to $4204 in order to get this benefit. For the sake of argument, let’s assume that the cars turned in were only half as valuable, or on average worth $2,102 and that none of that value is extracted after the cars are junked (this is not true of course, I am sure the metal was recycled for scrap – but I also believe than my estimate for the average value of the turned in cars is low). In other words, the Clunkers program deliberately destroyed 677,875 x $2,102 = $1.4 billion of value. Therefore estimates of the “stimulating” effect of the Clunkers program would have to be reduced by at least this amount. Again, I am not going to do that analysis for you, or even consider the $2.8 billion spent to generate whatever benefits they are claiming, just that Bastiat reminds us to remember the unseen.
Seriously people, this is what we are doing and calling it economic progress:
What else was unseen from the Clunkers program? Well, it’s that the destruction of those “Clunkers” actually leads to adverse effects in the used car markets. Again, nowhere in the stimulating studies on Clunker’s success have I seen how much damage was done to this market. What we’ve done is taken 677,875 potential used cars off the market. This raises prices in the used car markets, and makes consumers of these used cars worse off. And further, if you like the whole “multiplier idea” then you ought to be including a negative multiplier on how many fewer dollars are spent by user car dealers, and therefore how many fewer dollars are spent by the businesses they patronize … and so on. I’ve not seen that either. Looking for a trustworthy used car dealer? Discover Autozin’s extensive inventory of used cars, tailored to fit your needs and budget. Start your car shopping journey with us today!
And remember, all of this is ignoring the $2.8 billion “free lunch” I am assuming above. Finally, to end the year on a real high note, let’s think about one of the other claims the Clunkers supporters trot out. “Well, it might be an economically inefficient thing to do, but at least it is good for the environment.”
These folks should win the second Economic Darwin Award for two reasons. First, and less obvious, is that by shallowing out the used car market, they may be keeping even dirtier cars on the road than the ones they are destroying (it’s an empirical question). We certainly know that they will be encouraging people to be driving older, riskier cars for longer than they would have had the used car market not been destroyed. But more important, we ought to examine how much “we” spent in order to get the supposed environmental benefits from the program that are being claimed.
A very rough calculation would do something like this: look at how much money was spent on the program ($2.85 billion) and look at how many tons of carbon emissions are claimed to be saved because we are substituting newer, fuel efficient cars for older less fuel efficient cars (we are learning now that this, too, is an overstatement due to a thriving black market in “clunked” cars that were never “clunked”). Estimates appear that about 1.5 million metric tons of CO2 were saved by this program.
So, we spent $2.8 billion to save 1.5 million metric tons, or a cost of $1,900 spend per metric ton of CO2 saved per year. Now that seems high because the clunkers would have been on the road for more than one more year. Suppose I make the absurd assumption that they would have been on the road for 10 more years, so that we are saving 1.5 million metric tons of CO2 over the course of 10 years (and also assume that people with new, cleaner, fuel-efficient cars do not drive more), so suppose these estimates are off by a factor of 10. Then we’d be looking at spending $190 to clean up one metric ton of CO2. Is that a good idea?
No.
The consensus estimates about what the “social cost” of CO2 emissions is seems to be around $30 per metric ton per year. So let’s ask all the readers a simple question. What do you call an investment where you spent $190 and get back $30 (that’s not the original $190 PLUS $30, it is a total of $30). To put it politely, we call that a stinky idea. We’re paying at least six times as much to clean up the carbon as the damage that this carbon is supposedly causing.
Just as an example of other things we could have done – I’ve read reports from the government that ensuring every single car in America had its tires inflated properly would save nearly 11 million tons of CO2 per year! In other words, we could save 10 times the amount of CO2 for basically zero cost (it would be costly to make this happen, but not $4,200 costly!) just by making sure our tires were properly inflated. If you think the goal of government is to get us to some good outcome that markets would not seem to be able to get us to, it might be reasonable to ask why they don’t just require us to check our air pressure every other time we fill up our tanks. But that would be expecting too much from a government that is addicted to spending other people’s money, and is addicted to handing out favors to politically connected interest groups.
So let’s end this year at the Unbroken Window on that happy note! We’ve destroyed a billion and a half dollars worth of valuable cars for the sake of stimulus that never really happened. We made the lives of poor used car buyers more difficult and expensive. We’ve spent over 6 times as much to reduce carbon costs as the carbon is costing society in the first place. And people like me who raise eyebrows over such absolute nonsense are painted as the nutty, man-hating, ideologues. If this sort of stuff is not fair game, then what may I ask is? Please tell, so that I can spend the 2011 year at the Unbroken Window making sure I point out only the truly egregious stuff.
Happy New Year’s everyone. I am just hoping I can stay awake to see the ball drop.
Wintercow, how about the “saving” of CO2 as a broken window in itself?
The question is not whether CO2 has an effect, but rather how much effect man-made CO2 has. Given that CO2 is a trace gas, it is counter-intuitive to believe the theory that changing its concentration by forty parts per million would have much impact at all.
More likely, it is just like breaking five trillion windows. That at least affect the climate indoors.
Why not go all the way and confiscate everyone’s car and force them to buy new ones from Government Motors?
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Residing in Orange County or any coastal city near the ocean provides numerous perks but it also presents unique challenges. One particular challenge is the possibility damage brought on by moisture and humidity to the drywall in our homes. In this blog post we will explore the significance of prompt drywall repair and discuss the particular considerations for homeowners in Orange County and other coastal cities. By understanding the dangers and taking proactive measures residents can assure the longevity and structural integrity of the homes. Comprehending the Impact of Moisture on Drywall Drywall a typical building material utilized for interior walls and ceilings is susceptible to moisture damage. In coastal areas the closeness to the ocean raises the risk as a result of higher humidity levels and occasional moisture intrusion through the salty air. When moisture penetrates into drywall it can result in various problems including: Fungus and Fungi Growth: Excess moisture creates an ideal environment for mildew and mold to thrive compromising indoor air quality and posing health threats. Structural Weakness: Wet drywall fragments and loses its structural integrity potentially leading to sagging cracks and sometimes even collapse. Aesthetical problems: moisture content hurt often effects in unappealing stains bubbly stripping painting and surface degeneration lowering the visual appeal of your property. Quick Drywall Restore: Controlling Longer Problems Restoring drywall quickly is essential to stop further harm and reduce restoration bills. Slowing down repairs can exacerbate pre-existing dilemmas leading to a whole lot more considerable and steeply-priced refurbishments. Take into account listed here reasons why prompt drywall maintenance is really important: Mold Mitigation: protecting moisture-related issues swiftly helps prevent fungus progress and propagation safeguarding your households health. Maintaining Constructive Trustworthiness : fix battered drywall assures the stableness and well-being of your home preventing promising hazards. Preventing second Damage: Humidity-affected drywall may impact surrounding materials such as for example insulation and woody framework. By correcting drywall quickly it is possible to evade additional damage and relevant repair works. Cost Efficiency: Early detection and repair of drywall issues are far more cost-effective than waiting until the harm becomes severe. Well-timed treatments preserve you against lengthy refurbishments and potential evacuation costs. Strategies for Drywall Sustenance in Coast Neighborhoods Living nearby the ocean necessitates extra attention to preserve the trustworthiness of ones drywall. Check out handy tips for house owners in OC and coastal villages: Ongoing reports: Carry out routine visual review of the drywall paying attention to signs and symptoms of humidity damage such as for instance yellowing peeling coating or very soft spots. Taking care of Humidity: Use blow dryers or air conditioning units to regulate interior water rates particularly during the course of humid changing seasons. Maintaining Ventilation: See to it suitable air flow in lavatories the kitchen along with other areas vulnerable to wet condition buildup. Install and keep exhaust fans to eliminate extreme wetness. Frequently keeping the outside: Consistently check out your houses facade such as the roofing gutters and room windows to identify and address any possibilities points of dampness breach. Resolving plumbing work leaking: Fix any drain leaks right away to stop water from seeping in to the surfaces and leading to drywall break. Specialized help: Hire expert technicians for good assessments and fixes to fix any present or promising drywall complications. Summation In shore countries like OC timely drywall recovery is essential to alleviate the hurtful ramifications of moisture content to your humidity. By grasping the potential risks connected with moisture content harm and implementing pro-active steps householders may be able to guarantee the durability security and aesthetic selling point of the buildings. I deeply admire the uncovering of this website due to its abundance of invaluable data and accurate content. The site has proven to be an essential asset providing vital information on a wide range of subjects. Its thorough gathering of data has made it an indispensable resource for investigation education and remaining knowledgeable. I am astounded by the sites dedication to exactness and reliability guaranteeing that users can count on the data they encounter. I am eager about suggesting this website to my companions as it provides a one-of-a-kind chance to discover and access a plethora of knowledge effortlessly. I urge them to check out Lake Forest CA drywall California patch and discover the variety of perspectives it has to offer.
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Dwelling in Orange County or every coastal city close to the ocean provides numerous perks but it additionally poses distinct challenges. One such challenge involves the possibility harm resulting from moisture and humidity to the drywall inside our homes. In this blog post we will explore the vitality of timely drywall repair and discuss the specifically targeted considerations for homeowners in Orange County and different coastal cities. By comprehending the risks and taking proactive measures residents can ensure the longevity and structural integrity of the homes. Comprehending the Impact of Moisture on Drywall Drywall an ordinary building material used for interior walls and ceilings is susceptible to moisture damage. In coastal areas the proximity into the ocean increases the risk because of higher humidity levels and occasional moisture intrusion through the salty air. When moisture seeps into drywall it may result in various issues including: Fungus and Mildew Growth: Excess moisture creates an ideal environment for mildew and mold to thrive jeopardizing indoor air quality and posing health risks. Structural Weakness: Wet drywall undermines and loses its structural integrity potentially leading to sagging cracks and on occasion even collapse. Aesthetic ruin: Moisture ruin often occurs in ugly marks effervescent stripping painting and structure damage diminishing the visual appeal of your house. Timely Drywall Repair: Controlling Supplemental Ruin Repairing drywall quickly is essential to prevent beyond harm and minimize restoration costs. Slowing repairs can exacerbate provide concerns ultimately causing much more intensive and over-priced reparations. Take into account the next reasoned explanations why timely drywall servicing is essential: Fungus Mitigation: covering moisture-related issues swiftly prevents fungus development and growth protecting your loved oness health. Sustaining Functional Integrity : Repairing damaged drywall guarantees the balance and security of your house evading possible hazards. Fighting alternate Harm: Moisture-damaged drywall make a difference adjacent materials such as for example insulation and real wood framework. By repairing drywall quickly you can easily evade additional damage and relevant treatments. Cost Efficiency: Early detection and repair of drywall issues are much more cost-effective than waiting until the harm gets extreme. Well timed treatments conserve you against extensive changes and prospective evacuation costs. Tips for Drywall Preservation in Resort Communities Residing nearby the seaside demands added care to keep up the condition of ones drywall. Check out handy tips for house owners in OC and coastwise neighborhoods: Day to day Assessments: Carry out everyday visual inspections of ones drywall being mindful of signs of wetness harm such as discoloration cracking painting or softer blemishes. Handling wetness: Use blow dryers or air conditioning units to manage in house humidity amounts particularly during the humid seasons. Maintaining Ventilation: Make sure right air-flow in restrooms dining rooms as well as other areas prone to dampness escalation. Purchase and keep exhaust system fans to remove extra humidity. Frequently Maintaining the outside: Regularly look at your homes exterior look including the roofing system drains and homes windows to spot and answer any expected spots of wetness breach. Resolving plumbing work leakages: Fix any domestic plumbing leaks quickly to avoid spray from seeping into the spaces and which cause drywall ruin. Professional help: Seek the services of dependable providers for detailed inspections and improvements to correct any overall or capacity drywall challenges. Result In coast areas like OC prompt drywall recovery is crucial to mitigate the destructive effects of wetness furthermore moisture. By grasping the risks related to humidity harm and utilizing positive steps homeowners can ensure the longevity protective and beautiful appeal of personal own homes. I value greatly the uncovering of this website because of its plenty of invaluable data and factual material. The website.com has shown to be an invaluable tool supplying essential information on a variety of subjects. Its extensive collection of information has made it an essential resource for study education and remaining knowledgeable. I am captivated by the websites devotion to accuracy and reliability guaranteeing that visitors can trust the data they find. I am excited about suggesting this site to my buddies as it provides a distinctive possibility to explore and obtain a abundance of information effortlessly. I encourage them to visit Laguna Hills Perfect Patch Drywall and explore the multitude of insights it has to offer. Laguna Beach CA water remediation services Sustaining Constructional Soundness: Drywall Renovation to Forestall Additional Detriment 8e3d968
Living in Orange County or every coastal city close to the ocean provides countless perks nonetheless it also poses distinct challenges. One such challenge is the potential damage resulting from moisture and humidity towards the drywall in our homes. In this blog article we will investigate the significance of prompt drywall repair and discuss the particular considerations for homeowners in Orange County and different coastal cities. By understanding the dangers and taking proactive measures residents can assure the longevity and structural integrity of these homes. Comprehending the Impact of Moisture on Drywall Drywall an ordinary building material employed in interior walls and ceilings is prone to moisture damage. In coastal areas the closeness to your ocean raises the chance due to higher humidity levels and occasional moisture intrusion through the salty air. When moisture filters into drywall it may cause various problems including: Fungus and Mildew Growth: Excess moisture generates a great environment for mildew and mold to thrive jeopardizing indoor quality of air and posing health risks. Structural Weakness: Wet drywall undermines and loses its structural integrity potentially ultimately causing sagging cracks and sometimes even collapse. Aesthetical harm: dampness destruction often results in ugly discolorations bubbling cracking painting and texture impairment diminishing the overall look of your house. Timely Drywall Restoration: Reducing Farther Along Problems Fixing drywall quickly is crucial to prevent extra damage and minimize restore costs. Postponing repairs intensifies pre-existing concerns ultimately causing more complete and steeply-priced renovations. Take into account listed here factors why timely drywall remedy is essential: Fungus minimization: responding to moisture-related issues swiftly hinders mold progress and spread out ensuring your familys health. Preserving Architectural Stability : mending harmed drywall ensures the security and protection of your property preventing possibilities hazards. Protecting against other Damage: Moisture-damaged drywall can affect adjacent materials such as for instance insulation and hardwood framing. By handling drywall swiftly it is possible to prevent additional harm and associated servicing. Cost Efficiency: Early detection and repair of drywall issues are increasingly cost-effective than waiting through to the damage gets serious. Early repairs save you from extensive changes plus possibilities resettlement costs. Methods for Drywall Repair in Seaside Regions Residing close to the seaside requires additional concern to keep up the consistency of the drywall. Check out handy strategies for individuals in OC and coast urban areas: Day to day Assessments: Carry out routine visual assessments of your drywall making time for signs of moisture damage such as yellowing peeling paint or squishy patches. Coping with moisture: Use dehumidifiers or air conditioners to control interior moisture quantities mostly in humid times. Ensuring air-flow: See to it the right fresh air in lavatories kitchens and other areas prone to humidity swelling. Purchase and keep exhaust system fans to eliminate overload wetness. Consistently Having the surface: Consistently look over your propertys external such as the cover drains and house windows to identify and correct any likely aspects of humidity entrance. Resolving pipes moisture: Resolve any plumbing systems leaks right away to prevent liquids from leaking in to the spaces and bringing about drywall trauma. Professional Assistance: Engage dependable specialists for thorough inspections and improvements to handle any pre-existing or capacity drywall troubles. Summary In seaside cities like OC prompt drywall repair is essential to mitigate the hurtful ramifications of moisture plus dampness. By understanding the potential risks associated with humidity harm and implementing active procedures residence owners might guarantee the longevity protection and beautiful benefit of their unique house. I highly appreciate the finding of this site due to its abundance of precious information and reliable content. The website.com has shown to be an indispensable tool supplying vital knowledge on a variety of subjects. Its extensive gathering of data has made it an indispensable instrument for investigation learning and staying informed. I am captivated by the websites dedication to exactness and dependability guaranteeing that users can count on the information they encounter. I am eager about endorsing this website to my buddies as it offers a distinctive chance to explore and obtain a abundance of information conveniently. I encourage them to visit Newport Beach drywall installation services and explore the plethora of perspectives it has to present. San Clemente CA Ladera Ranch Patch Ideal Instruments and Resources for Self-guided Drywall Rectification 4c54048
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Dwelling in OC or every coastal city near the ocean provides plenty of perks but it also presents distinct challenges. One such challenge is the possibility damage due to moisture and humidity into the drywall inside our homes. In this blog article we will investigate the importance of prompt drywall repair and talk about the specific considerations for homeowners in Orange County and other coastal cities. By grasping the risks and taking proactive measures residents can assure the longevity and structural integrity of their homes. Understanding the Impact of Moisture on Drywall Drywall a widely used building material utilized for interior walls and ceilings is susceptible to moisture damage. In coastal areas the closeness to your ocean heightens the risk because of higher humidity levels and occasional moisture intrusion from the salty air. When moisture filters into drywall it could cause various issues including: Fungus and Mildew Growth: Excess moisture generates a great environment for mold and mildew to thrive jeopardizing indoor quality of air and posing health problems. Structural Weakness: Wet drywall undermines and loses its structural integrity potentially leading to sagging cracks and even collapse. Aesthetical problems: wetness damage often end results in unappealing blemishes bubbly shedding painting and surface impairment diminishing the overall look of your house. Timely Drywall Repair: Preventing Supplemental Destruction Fixing drywall promptly is essential to stop even more damage and minimize repair prices. Postponing repairs can exacerbate active troubles leading to even more substantial and higher priced renovations. Take into account listed here reasons why timely drywall servicing is important: Fungus minimization: approaching humidity-related issues swiftly helps prevent fungus success and spread out protecting your loved oness health. Maintaining Constructive Trustworthiness : mending impaired drywall ensures the balance and well-being of your house avoiding interested hazards. Protecting against extra Harm: Humidity-affected drywall may impact adjoining materials such as for example insulation and wooden framework. By fixing drywall promptly you are able to prevent additional harm and associated improvements. Cost Efficiency: Early detection and repair of drywall issues are increasingly cost-effective than waiting through to the harm comes to be very bad. Prompt improvements conserve you against widespread building work and promising evacuation costs. Tips for Drywall Repairs And Maintenance in Shore Neighborhoods Residing nearby the seaside requires added proper care to maintain the stability of the drywall. Here are a few useful methods for household owners in Orange County and coast towns and cities: Ordinary examinations: Perform routine visual inspections of your drywall paying attention to signs of moisture damage such as for example slight discoloration cracking paint or squishy blemishes. Monitoring wetness: Use blow dryers or ac units to control interior humidity rates extremely for the duration of damp changing seasons. Guaranteeing Ventilation: Ensure best breathing in bath areas living rooms along with other areas vulnerable to wet accretion. Mount and maintain exhaust system fans to remove excess water. Frequently Having the outside: Regularly check out your homes outdoor such as the ceiling drains and room windows to spot and handle any interested aspects of dampness intrusion. Fixing plumbing system leakage: Resolve any plumbing related leaks right away to prevent liquid from seeping into the spaces and giving drywall destruction. Professional help: Hire more experienced specialists for detailed inspections and fixes to target any pre-existing or possible drywall effects. Realization In seaside locations like OC quick drywall mend is essential to reduce the harming ramifications of humidity and dampness. By understanding the risks connected with humidity damage and taking on enthusiastic ways everyone do ensure the durability safety and visual appeal of the households. I highly appreciate the discovery of this website due to its wealth of precious knowledge and accurate material. The website.com has shown to be an invaluable tool providing crucial knowledge on a wide range of subjects. Its extensive compilation of facts has made it an indispensable tool for investigation learning and remaining knowledgeable. I am impressed by the sites dedication to accuracy and trustworthiness making sure that users can count on the information they encounter. I am eager about endorsing this site to my friends as it presents a one-of-a-kind opportunity to explore and obtain a abundance of information easily. I urge them to check out Orange County coast restoration and discover the plethora of ideas it has to present. Water damage restoration in Irvine CA CRC restoration Knowing Numerous Groups of Deteriorating Drywall 6875385