Amidst U.S. car manufacturer worries, and the hundreds of car dealerships that have already closed in the United States, dealerships are offering creative incentives to buyers in order to sell cars. In Miami, that includes a Buy One, Get One Free campaign that seems almost too good to be true.
But with all the talk of an Automaker bailout in Washington, what seems to be ignored is the fact that the hit to auto makers is not just relegated to U.S. made cars. Honda, Toyota and Nissan profits have also dipped as sales have dropped by nearly 40%. That drop is not as large as the nearly 50% drop for American manufacturers, but it indicates that the problem is an economic shift, not something that requires a bailout at a time when everyone is being hit hard.
Those who have money to spare will see big buyer incentives and huge deals on cars, real estate and other goods as the economy reduces prices to levels that investors can use to scoop up assets that will, eventually, result in even more profits.
But until the middle class comes out of this economic slump with some money in the bank, it is likely that businesses will continue to decline, with many finding it impossible to keep their heads above water. As with any economic shift, these changes will open new avenues of revenue elsewhere, despite the warnings of apocalyptic proportions from car dealerships.
That may not be promising news for unskilled laborers who will be harmed the most by these slumps, but at least it is somewhat of a silver lining for the economy as a whole in years to come.