Robert Casto Software Developer and Performance Engineer

I read an article Sunday in my local newspaper about how a bad dealer is being kept by GM while a dealer they liked is being let go. I thought about this for a minute and realized that it makes total sense. GM is going to keep the dealers that sell lots of cars. Those dealers that sell fewer new cars are not as good for GM. It turns out that the good dealer does great repairs, has good people working the used car lot, and lots of customers like them. They make plenty of money and do a great job for their customers. But because they don’t sell as many cars for GM, they will be let go. Whenever I see something that doesn’t make sense, I always look for the money reason. In this case, the money reason is simple. GM wants dealers that sell lots of new cars. Customers want dealers who take care of them. So it is safe to assume that a number of great dealers are not going to make the cut.

Posted under Economy, Rants

Stimulus checks don’t work because they are money. It can be deposited to a savings account and forgotten about. Or, they can be used to pay utility bills, lower the balance of credit cards, or help pay the next mortgage payment. These expenses were going to be paid for anyway, so the stimulus check does nothing to increase demand in the economy. Gift or money cards on the other hand are not exchangeable for cash, start loosing value over time, and cannot be used to pay utility bills or mortgages. They have to be used for purchases, and if they are not used, then their value is lost. If everyone were given $800 cash cards, they would have to spend that money on a new TV, computer, or some other purchase allowed by the card. The card should be backed by the government instead of a company like Visa or American Express who would make a large amount off the fees. If the idea is to get demand going by having the consumer spend the money, use a tool that ensures the money has to be spent on things instead of a check which just helps in paying the bills.

Posted under Economy