And the irony is not lost on the fact that when Biden took office as vice president under president Barack Obama in 2008, both GM and Chrysler were out of cash and just weeks away from a complete collapse. But Barack Obama and Congress stepped in to bail them out. Auto manufacturers and suppliers dramatically curtailed production that year as the industry shed over 400,000 jobs.
I remember learning an interesting statistic in 2008. One, in ten American jobs, has some connection to the automobile industry.
But now, for all the good Barack Obama was credited doing back in 2008, Joe Biden is seemingly intentionally destroying the American auto industry and that destruction can be seen at your local auto dealers right on back to the manufacturing plants. There are brand new 2022 vehicles sitting on some car lots still waiting for owners!
This new problem is multi-faceted so it can be kind of confusing. We will try to keep it simple.
ICE Bad, EV Good
Joe Biden came into office buying into the whole climate change hoax as an excuse to curb crude oil production while promoting electric vehicles in accordance with the Green New Deal and the United Nations (UN) Agenda 2030. The price of gasoline when Biden took office in January of 2021 averaged $2.4 per gallon. By December of that same year gasoline had risen to over $3 per gallon and by June of 2022, it peaked at an average of $5.06. This is according to data from the U.S. Energy Information Administration (EIA). So Biden nixed American fossil fuel production for internal combustion engine (ICE) vehicles while promoting the sale and use of electric vehicles (EVs).
Knee Jerk Climate Change Reaction Caused Inflation
What then made Joe Biden look like an inexperienced clown was after he destroyed domestic oil production, and the price of a gallon of gas shot up as high as $7 in some parts of the country, his solution was to go out begging for more crude from foreign governments like Venezuela and Saudi Arabia. This was the polar opposite of President Donald Trump’s “America First” motto.
Of course, since less than 2% of the vehicles on the road run on electricity, 98% of the rest of the population operating ICE vehicles suffered from suddenly inflated gasoline prices offering less disposable income. The Biden cutbacks related to fossil fuel energy was the first contributing factor to his inflation that rocketed us to over 9% in less than 2 years after he took office.
Inflation Breeds Higher Interest Rates
So with the Federal Reserve monitoring our economy, they raised interest rates to try to curb Biden’s runaway inflation. Two big ticket American Dream items hit by this action were shelter and transportation. So the housing market and auto industry took a hard hit thanks to Biden making loan interest rates for these items skyrocket over 7%. Basically, the Biden Administration and the policies they ushered in made it virtually impossible for younger working Americans to be able to afford a new car or home. As a result, used cars actually increased in value as they are now more affordable than new cars.
Market Demand and Price Point
Demand for EVs is down irregardless of Biden’s efforts to hoodwink Americans into the climate change hoax. EVs did come in around the price point many Americans can afford for a new car, around $50,000. But, under Bidenomics, the Street website reports “only about 22 percent of Americans can afford a new car” now.
Two other issues that taking the American auto industry down the toilet are:
The same way Democrats have overly inflated the minimum wage decimating retail sale operations, they have also supported unions such as the United Auto Workers (UAW) with their inflated contract paygrades which have priced desired vehicles to the point nobody can afford them.
The second issue is the automaker higher-ups are taking their marching orders from Joe Biden rather than market demand. They should tell Joe and his climate change cult pipe dreamers to go to hell. For example, Stellantis is coming out in 2025 with 18 of their 25 models as EVs, a move which is sure to destroy them. In America, Stellantis is known for making Chrysler, Dodge, and Jeep.
“THIS Will Put JEEP, DODGE & RAM OUT OF BUSINESS!” – Car Questions Answered
Market demand shows Americans love to drive their pickup trucks, sport utility vehicles (SUVs), and crossovers (cross between a minivan and SUV). Unfortunately, for them, these vehicles are closer to $100,000 than 50,000. As a matter of fact, the best-selling passenger vehicle in America has been the Ford F-150 pickup for 46 straight years!
“IT BEGINS… Dealers CAN’T SELL $100,000 Trucks & SUVs” – Motor Feed
And for the record, making EV versions of pickups and SUVs has not been a wise marketing move either. The main reason people buy these vehicles is to actually use them as intended, to toe things behind them (boats, campers, trailers, etc.), and EV versions do not do this well at all.
CONCLUSION:
American credit card debt has recently topped $1.1 trillion dollars while personal savings have dropped from a record $4.8t down to $628b under Joe Biden.
Under President Donald Trump personal savings reached an all-time high of 32% in April of 2020. Under Joe Biden, that rate was down to 3.4% in September of 2023.
My Dad raised me with a lot of old expressions he probably learned from his Dad. Two that come to mind doing this story are;
“One hand washes the other,” and “You can lead a horse to water, but you can’t make him drink.”
Joe Biden’s endorsement by the UAW because he supports their inflated contract demands will ultimately destroy American automakers. Americans are now washing their hands of the idea of buying a new American-made car rather than automakers and buyers washing hands together as they have in the past.
Promoting this hoax of climate change by trying to force Americans from the ICE vehicles to EV vehicles is a good example of leading a horse to water when they don’t want a drink.
This is going to get bad folks, really bad. This collapse of the auto industry will throw the 2024 election to the Republicans because the Democrats caused this all by themselves and Americans know it!
And for those who think I am just a negative conservative out to bash Joe Biden and the Democrats, you better think harder. Matter of fact you better look at car loan delinquency rates in America right now. They are going up to historic numbers and as I always say, the math never lies.
“Auto Loan Delinquencies Hit 13-Year High As Monthly Car Payments Get Bigger” – Investopedia
Copyright © 2024 by Mark S. Schwendau
