We Need To Encourage Consumer Spending
The experts say Chrysler and GM simply cannot make money at the current depressed level of auto sales. Detroit sold about 11 million cars this year. It sounds like a lot, but the year before they sold 15 million cars. If you take the average price of a car and multiply that by the four million difference, you can see why the CAN'T MAKE MONEY at this level of sales. Take a look:
$30,000 x four million = $120 Billion in reduced gross sales for the automakers. That's something they can't recover from with a few billion dollars in stop-gap government loans. We need to buy more cars again to get them healthy.
Instead of throwing money at the auto makers, Congress needs to throw it at us. If you were able to deduct the interest on your auto loan, that would save you a significant amount of money and make a new car more affordable.
It's simple: Detroit needs to sell more cars. We all want those companies to survive - they're part of American heritage and provide millions of jobs. With a tax deduction on auto loan interest, we’ll be able to buy new cars and get the sales levels back up. [read more]
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