Our economy is really screwed up

[disneysteve]

I heard on the news this morning that the powers that be are very excited because so far this year, truck and SUV sales are ahead of car sales. The fact that more people are spending more money on more gas-guzzling vehicles is being viewed as a great thing for the economy.

Surely I'm not the only person who has a problem with that.

[JoeP]

There are many indicators of economic health, and I'm sure this is just another way of showing that people are spending more on vehicles up front, and also feel their jobs are secure and pay enough to support the costs of higher fuel consumption.

I'd rather focus on jobs and home sales.

[ua_guy]

I heard on the news this morning that the powers that be are very excited because so far this year, truck and SUV sales are ahead of car sales. The fact that more people are spending more money on more gas-guzzling vehicles is being viewed as a great thing for the economy.

Surely I'm not the only person who has a problem with that.

You're right; I'm not sure how this is a surprise though. The economy has always operated on profitability, growth, and positive outlook.

[edg126]

Last month the owner of our local diner discussed how they got a loan for their new truck even with terrible credit, and that to get it the bank required them to pay for a device that if they don't pay the bill the car won't start. She then discussed how it's turned off occasionally. I'd love to know what the interest rate is on it.

[JoeP]

Last month the owner of our local diner discussed how they got a loan for their new truck even with terrible credit, and that to get it the bank required them to pay for a device that if they don't pay the bill the car won't start. She then discussed how it's turned off occasionally. I'd love to know what the interest rate is on it.

OMG, how desperate would someone have to be in order to allow a bank to attach such a device to a vehicle?

[disneysteve]

OMG, how desperate would someone have to be in order to allow a bank to attach such a device to a vehicle?

What's really sad is that it just never seems to occur to these folks to buy a cheaper vehicle, one they can actually afford. I don't know what goes on in their heads when they enter into deals like this.

[disneysteve]

You're right; I'm not sure how this is a surprise though. The economy has always operated on profitability, growth, and positive outlook.

I didn't say I was surprised. More like disgusted. With all the talk of global warming and pollution (see what's happening right now in Paris and Belgium), hearing them so excited about selling more trucks is pretty sad.

[ua_guy]

Then consider the fact that one of the reasons vehicle sales in general is increasing is because lenders are reaching deeper into subprime markets. It's not because people are earning more money post-recession, it's because lenders can still relax their criteria while borrowing money from the Fed is pretty much free.

[JoeP]

I didn't say I was surprised. More like disgusted. With all the talk of global warming and pollution (see what's happening right now in Paris and Belgium), hearing them so excited about selling more trucks is pretty sad.

I see your point. But consider that one economic sector can get excited about news that another sector sees as bad news. If it makes you feel any better, Ford has a wide variety of engines for its F-150 truck with fuel economy in mind.

[disneysteve]

Then consider the fact that one of the reasons vehicle sales in general is increasing is because lenders are reaching deeper into subprime markets. It's not because people are earning more money post-recession, it's because lenders can still relax their criteria while borrowing money from the Fed is pretty much free.

Absolutely. Also, when consumer confidence increases, people are willing to borrow more and spend more just because they have a better outlook, not necessarily because they have more money.

[greenskeeper]

You're right; I'm not sure how this is a surprise though. The economy has always operated on profitability, growth, and positive outlook.

an economy based on infinite growth on a finite planet....should end well

[ua_guy]

an economy based on infinite growth on a finite planet....should end well

Yeah. One of its many problems

Also, I can't tell if this is a more recent (<20 years) issue or if it's always been this way, but the economy slides now when growth is still positive, but didn't meet the unrealistic expectations of "analysts." For example, truck sales can be up 10% YTD, but because they were less than the 15% projected, suddenly auto manufacturing stocks are lambasted. Same thing with Christmas-- "Americans bought more than ever before, but they didn't buy as much as we wanted, so meh..."

[snafu]

but,but,but look at all the revenue one of or all three levels of government collect on new vehicles. Guzzlers are even better because there are more taxes collected on fuel. Use more fuel mpg and gov't collects more...all that oil from ND shale makes more jobs, more jobs makes for Income Tax, eh What's not to like from tax collector POV?

[Mjenn]

That is depressing. We could do so much more if we managed to find a way to do what we do now in a more sustainable way, and it would also help to buffer the economy and give middle class people stability, but instead we aim towards constant growth --- which is in the end always unsustainable.

But hey, YOLO

[Weird Tolkienish Figure]

I heard on the news this morning that the powers that be are very excited because so far this year, truck and SUV sales are ahead of car sales. The fact that more people are spending more money on more gas-guzzling vehicles is being viewed as a great thing for the economy.

Surely I'm not the only person who has a problem with that.

People are free to spend money on whatever the hell they want. If you don't like them, don't buy them. I don't.