In Soviet America, the car buys you! Part 2

Did you ever wonder why cars are so expensive when there are lots and lots full of them?  According to the laws of supply and demand, the huge supply of autos should result in the price going down.

I used to wonder why the car manufacturers were pumping out more cars every year.  For example, last year the local Kia plant pushed out 360,000 vehicles.  There aren’t that many people in the U.S. who are buying cars.  So where do they go?

THE WORLDS UNSOLD CAR STOCKPILE

Houston…We have a problem!…Nobody is buying brand new cars anymore!  Well they are, but not on the scale they once were.  Millions of brand new unsold cars are just sitting redundant on runways and car parks around the world.  There, they stay, slowly deteriorating without being maintained.

Below is an image of a massive car park at Swindon, United Kingdom, with thousands upon thousands of unsold cars just sitting there with not a buyer in sight. The car manufacturers have to buy more and more land just to park their cars as they perpetually roll off the production line.

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The car industry would never sell these cars at massive reductions in their prices to get rid of them, no they still want every buck.  If they were to price these cars for a couple of thousand they would sell them.

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The car industry cannot stop making new cars because they would have to close their factories and lay off tens of thousands of employees.  This would further add to the recession.  Also the domino effect would be catastrophic as steel manufactures would not sell their steel. All the tens of thousands of places where car components are made would also be effected, indeed the world could come to a grinding halt.

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Tens of thousands of cars are still being made every week but hardly any of them are being sold.  Nearly every household in developed countries already has a car or even two or three cars parked up on their driveway as it is.

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Some car manufacturers moved their production over to China, General Motors and Cadillac are examples of this.  They are then shipped over in containers and unloaded at ports.  However they are now being told to put a big halt in their import into the U.S.A. as they just can’t sell them in the quantities they would desire.  Consequently Chinese car parks are now filling up with brand new American cars.

Now you know why the federal government bailed out GM and Chrysler.  Check out the links, it’s pretty shocking.  Jeebus, nobody understands economics anymore…

 

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Categories: All is well!!!, Depression, Hmm, Humor

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