Every now and then, looking at the cars around me, I wonder how this will all turn out. With falling house prices the real estate bubble has become obvious, but the car bubble remains almost unremarked.
How does this work? A person buys a Cadillac SUV, an act I regard as equivalent to piling $50,000 on the ground and setting it afire. Then, every month, they merrily burn a few hundred dollar bills putting gas in the thing.
How does this not affect our economy? There is no excess value created by the driver of a recreational pickup truck or SUV. In fact, considering the observed behaviors of cell-phone chatters, new cars are arguably an ateriosclerosis of our transportation arteries.
John Maynard Keynes said you could make the economy go by burying gold and paying people to dig it up, but that was before we realized what the carbon was doing to our atmosphere. I’ve formed no conclusions but, if you think about what you see around you, you may, like me, be flabbergasted- and wonder how this will all turn out.