Who is Subsidizing Whom?

Today's Statesman Journal has an article about Oregon getting $2 million to build charging stations along I-5 for electric vehicles. Isn't that special?! Quaere (I have always liked the Latin word for "question" - it's much more erudite): Who buys electric cars? Hmmm...

The Chevy Volt is over $40.000. The Nissan Leaf that is specifically mentioned in the article has an MSRP of "only" $32,780. Both of these have been heavily subsidized by the Feds in R&D. Even with a tax credit of $7,500, they are both quite expensive.

The median U.S. household income for 2008 (last year available) was $52,029. I don't think this income range is probably a good target market for these cars. They would struggle with a car in the mid-teens, if they could afford a car right now at all.

How about families in the $100,000/year bracket? Well, maybe - if they aren't sending their kids to college with no financial aid, saving for retirement, worried about losing their job, etc. How about we double it to $200K per year? Now we may be getting in range. Except people at this level who own businesses are also saving for retirement, maintaining cash to even out cash flow in these hard economic times, plowing money back into their businesses, sending kids to college with no financial aid, etc.

But there are those in this range who have no kids, love being green, and have a reliable SUV or Audi in the garage as a backup when they really need to get somewhere ( remember these electric cars have a whopping 50 miles on a good day range) and can afford the price tag to show how green they are. And it is these folks, mi amigos, that we are subsidizing with $2 million charging stations. Makes you feel warm and fuzzy all over doesn't it? Pass the wine and Brie please.