Wholesale auto auctions have been the trend for years since the days of the recession. The used car market is much larger nowadays than the new car market. Economists are sensing a shift in the demand from used cars to new cars, as we experience a lower availability of the favored models. That is, the later models of wanted cars with low mileage.
As the recession took place, consumers heavily leaned on used car dealers to help get deals on the popular cars of that time. This worked for quite a while- up until now. As demand is high for those used cars, dealerships are finding it harder and harder for car dealerships to supply available used cars.
Since fewer people bought new cars, fewer used cars are available to sell. Analysts say that this is allowing supply of new cars to come closer to meeting demand. With this also comes the rise of the price of used cars as supply shrinks. Now we see almost an equivalent price range for new cars, and used cars.
There is still hope for used cars, however. In 2016, car analysts are expecting an excess of used car availability due to the increase in leases this year. As the new car leases end in 2016 we will see an inflation in the used car market and therefore a decrease in the prices of our favorite style cars.
Supply and demand go hand in hand. This is incredibly evident in the car business. During the recession, the demand for used cars increased due to a major shift in peoples incomes. In turn, this caused a decrease in the supply of new cars. Nowadays, however, we see a decrease in the availability of used cars because the new cars have stopped being produced and therefore, used. This clearly means that there will be an increase in the demand for new cars due to the fact that used cars are almost equivalent in the price of used cars. This action is a result of the scarcity of used cars.
As I read Jaclyn Trop's "After Running Hot, Market for Used Cars Is Cooling" from The New York Times, published recently on October 18th, I found it interesting to be able to personally recall the time period in which used cars first became popular. I remember helping my mom pick out which cars to lease, or buy, and I remember her explaining the idea of used cars to me as a child. Being able to connect the idea of supply and demand with this article has allowed me to further understand why industries are always shifting and having to adjust to peoples demands. Looks like I will be waiting to buy my first car near the year 2016.
Sunday, October 20, 2013
Sunday, October 13, 2013
Discrimination and Health Care
"The Color of Affordable Care" written by Nancy Folbre mentions several different issues that are discussed throughout this article. The top priority issue would be the topic of racism and how it affects our economic choices. The racial "loyalties shape..perceptions of economic benefits" even though Americans try not to discriminate. Folbre mentions the habits of people to overestimate who benefits the most from health care changes and our government representatives. The answer to who benefits is picked from a handful of options. The article talks about the racial aspects, as well as the different social classes. Many high class citizens disapprove of the health care laws because they believe it will only benefit the lower class. Folbre makes a good point when she mentions that those upper class individuals aren't necessarily in need of health care, but they feel discrimination since they aren't benefiting.
This article outlines the idea of economic freedom, in a way. The final sentence states "access to affordable health insurance should be considered a civil right for everyone." The issue with this is that not "everyone" can possibly benefit in the same way. As our government aims for improvement America must recognize the presence of discrimination between classes, as well as race, and work with it rather than try to avoid it.
Sunday, October 6, 2013
Technical Delays with Obamacare
Jackie Calmes published an article titled "Urging Patience, Obama Says Problems With Health Care Sites Reflect Demand" in The New York Times on October 5, 2013. The issue at hand is a debate questioning why Obama's health care enrollment, which opened on Tuesday, has experienced so many technical glitches. Obama has made several statements claiming the the technical issues are actually a good response and a result of how popular the demand for health care is. Others, however, are foreshadowing the technical glitches as a symbol of the failure expected within the program. House Republicans immediately began to demand that the "health care law be defunded or delayed" as the government experienced a shut down, also taking place on Tuesday.
Since the United States is considered a mixed economy as well as a market economy, we practice both private individuals and the government directing our economy. With this being said, the citizens of the United States have a right to health care and the government has a role to play in that. Obama has been fighting for Obamacare to be available to the mass and to ensure all Americans have the health care they desire. This is why so many people are questioning the fact that there have been so many issues on the website that Americans are supposed to be using to enroll for healthcare. The public has kept their word and followed through with their enrollment, but has Obamacare kept their word and ensured health care for all those attempting to enroll? We are observing tension rise as Republicans use this incident to articulate the need for a delay in Obamacare, and Democrats respond with the ensuring that the technical disturbances proves Obamacare will be a huge success. Have the individuals been let down by the government within these last few weeks?
Since the United States is considered a mixed economy as well as a market economy, we practice both private individuals and the government directing our economy. With this being said, the citizens of the United States have a right to health care and the government has a role to play in that. Obama has been fighting for Obamacare to be available to the mass and to ensure all Americans have the health care they desire. This is why so many people are questioning the fact that there have been so many issues on the website that Americans are supposed to be using to enroll for healthcare. The public has kept their word and followed through with their enrollment, but has Obamacare kept their word and ensured health care for all those attempting to enroll? We are observing tension rise as Republicans use this incident to articulate the need for a delay in Obamacare, and Democrats respond with the ensuring that the technical disturbances proves Obamacare will be a huge success. Have the individuals been let down by the government within these last few weeks?
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