The GM "Volt:" Subsidized Vanity for the Wealthy Paid for By the Middle Class.

Jonah Goldberg:

At $41,000, about as much as the average American makes in a year, this is no people’s car. GM, owned by the government and the labor unions, is pitching it to affluent hipsters who don’t need a lot of space for a family. Deloitte Consulting says that the demand for such cars is from “young, very high income individuals” from households that make more than $200,000 a year, which is why the Volt will be rolled out in upscale, trendy urban markets. (Meanwhile the Chevy Cruze, the gas-only version of the Volt, has more room inside and is a mere $17,000.)

Because the Volt’s sticker price might be too high for even that crowd, the government is offering a federal subsidy of up to $7,500 (Californians have a state subsidy, too), which means that working-class people will be helping to pay for playthings for upper-income people.

“Like the EV1 that GM tried to peddle in the California market,” Kenneth Green, an environmental scientist at the American Enterprise Institute, says, “the Volt is a vanity car for the well-off that will be subsidized by less well-off taxpayers at all stages, from R&D to sales and to the construction of charging stations.”

Indeed, the Volt’s price is $41,000, but the cost is much higher. “Government Motors” is already selling the car at a loss. According to the blogger Doctor Zero, if you apply the subsidies that have gone directly into the car to just the first 10,000 vehicles, the cost is more like $81,000 per car.

Read the whole thing.