Cash For Clunker Policy Is Crackpot Economics - WSJ.com Americans are streaming back into auto showrooms, and one reason is the cash for clunkers subsidy. Democrats are naturally claiming this is a great success, while Republicans are claiming that because the program has run out of clunker cash so quickly, this proves government cant run the health-care system. How do we elect these people? What the clunker policy really proves is that Americans arent stupid and will let some other taxpayer buy them a free lunch if given the chance. The buying spree is good for the car companies, if only for the short term and for certain car models. Its good, too, for folks whove been sitting on an older car or truck but werent sure they had the cash to trade it in for something new. Now they get a taxpayer subsidy of up to $4,500, which on some models can be 25% of the purchase price. Its hardly surprising that Peter is willing to use a donation from his neighbor Paul, midwifed by Uncle Sugar, to class up his driveway. On the other hand, this is crackpot economics. The subsidy wont add to net national wealth, since it merely transfers money to one taxpayers pocket from someone elses, and merely pays that taxpayer to destroy a perfectly serviceable asset in return for something he might have bought anyway. By this logic, everyone should burn the sofa and dining room set and refurnish the homestead every couple of years. It isnt clear this will even lead to more auto production over time, since the clunker cash may simply cause buyers to move their purchases forward. GDP will get a fillip in the third and perhaps fourth quarters, which will please the Obama Administration. But the test will be if auto sales hold up next year and into the future once the clunker checks go away. The debate over the subsidy may even have prolonged this years auto slump as buyers delayed their purchases waiting for the free lunch. All of Washington professes to be surprised that the $1 billion allocated to the subsidy has been used up so quickly, but giving away money is one thing government knows how to do. The Clunkers who are in Congress are now patting themselves on the back for their great success, and the House quickly voted to pass out another $2 billion in clunker coupons. With a $1.8 trillion budget deficit, whos going to notice this pocket change?[/B] Clearly, we spoilsports need an attitude adjustment to Washingtons new economics. And since money is no object, lets give everyone a $4,500 voucher for other consumer goods. Lets have taxpayers subsidize the purchase of kitchen appliances, womens clothing, the latest Big Bertha driverour Taylor-made is certainly a clunkerand new fishing boats. These are hardly less deserving of subsidies than cars, and as long as everyone thinks we can conjure wealth out of $4,500 giveaways, lets go all the way. What a bunch of yahoos we have in Congress and the White House... OMFG...people snatched up $4500 handouts.... The government is willing to take on $4500 of debt per car and destroy thousands of dollars of merchandise....no wonder we have a 1.8 trillion dollar budget deficit, these morons are unbelievable.
the cash for clunkers is one of the major failures of the obama administration....i am so upset over the fact that because i elected to get a car with good gas mileage from jump....i get nothing....*putting hand out*....but joe blow who was an idiot to begin with...gets $4500...for his low gas mileage toy... now i am aware that taking on a car payment during a period of "funemployment"..(i am still not sure why its fun...but i will go with the party line) would be stupid...now are yall aware that you can triple dip here.....the rebate...4500....a credit for a hybrid...if you go that avenue...and then a sales tax credit...the destruction of the trade ins ....will gut the used car market...if obama had really wanted to make an energy statement he would have made the gov bailout ....conditional on producing hydrids or coming up with better gas mileage cars...i see this as a way to get rid of inventory...of cars that are already outdated....a consumer fraud on so many levels...and yet people rushed out to do it.
Since not one penny has actually been paid to ANY dealer yet, how do they know they are out of money to begin with? Boondoogle is definitely what this is. Are you aware Obama proposed that certain parts like engines and such not be available for sale anymore, especially used parts. As was pointed out by several prominent people already this whole program is simply a pay back to the Auto workers Union.
the gov is making salvage yards run silcone in the engines till they sieze up...major hit for the salvage people who make a lot of money on reselling engines and transmissions...
Nothing older than a 1984 vehicle can qualify. And the new car must get more than 10MPG better than the trade-in. My 1981 Ford F-150 that gets 14 MPG doesn't qualify under these rules. I think I'll just keep the old girl.
Your F-150 would qualify for any vehicle that gets 24 MPG wouldn't it? FYI my Ranger gets 25 MPG in the city and about 30 MPG on the highway. Not as big, perhaps, as what you need, but it is a truck that qualifies for that largess. 2009 Rangers are going for about $15,000 fully equipped, I think.
Well, there is some public benefit such as less demand for petrol, less of a dependence on "foreign oil," and better air quality/ less pollution.
