How to make cars the engine for middle class prosperity (just like housing)
Cars are great as a way to get places, but they make terrible investments. Who hasn’t heard the tired phrase, “your new vehicle loses 20% as soon as you drive it off the lot”?
What if it didn’t? What if you could buy a car AND it could increase in value year after year. Sounds amazing!
What’s better, if cars appreciated in value, we’d all be better off. We could take a consumable good and turn it into an investment. Cars could become the engine of middle class prosperity (pun intended).
There’s only one thing we need to do to make this happen. We need to stop building new cars. JUST STOP. If we stop building new cars, cars can become the amazing investment they were always meant to be.
What about future car owners you might ask? How are they going to be able to afford cars if they keep getting more expensive? Great question! I’m glad you asked. The answer is simple. We could subsidize debt for car ownership and help lots of people buy into this appreciating asset class. It makes sense to borrow money when an asset rises in value.