Tags
automobile rebate program, clunkers for cash, Economy, GDP, inefficiencies, spending, taxes, waste
Here is another example of government efficiency. This one involves the “Cash for Clunkers” program, or the Car Allowance Rebate System. The program was scheduled to run through November 2009 or until the money ran out. Well, the money ran out within one week, and the Congress authorized the expenditure of another $2,000,000,000.00 (2 BILLION) taxpayer dollars to continue the program.
AutoNation CEO Mike Jackson said Friday he was hoping for additional funding in the federal Cash for Clunkers program, even as the U.S. House of Representatives voted to add $2 billion to the program.
Members of Congress warned late Thursday that $1 billion in initial funding had run out. But, the Alliance of Automobile manufacturers sent out an e-mail to members Friday, saying dealers and manufacturers should count on an extended program.
The part of this story that I found scarey is the part where money projected to last through November of this year (or 17 weeks); however, the money lasted only FIVE DAYS. If the projections of this program are reflective of the projections associated with the public health care reform bill, how much do you figure the alloted 2 TRILLION DOLLAR budget will really add up to? This becomes especially frightening when one considers that the Congress hasn’t even read the 1000+ page bill (a copy of which is linked to within the article on Congressional health care).
Consider this as well: When a dealer buys your “clunker”, no matter how good a condition it may be in, it MUST be destroyed. Above and beyond that, NO parts may be removed from the automobile for resale to people who could benefit by discount pricing for used parts. Additionally, if all of the “clunkers” are destroyed, what effect do you think that activity will have on used car prices? Who is most likely to be hurt by this program, the lower income or the upper middle class?
Another thing to consider is that most of our GDP (Gross Domestic Product) is actually the result of consumer spending above their means increasing debt and not saving. With a bad economy, what kind of spending to you anticipate compared to previous years. If spending stops or slows significantly, what do you suppose the effect of that will be on our GDP, and hence, the American economy and lifestyle?
Free money sounds good, and the government is the first to warn you that if a deal seems too good to be true; it probably is. So, why would you think a deal that is too good to be true is actually true when the government is the peddlar? There is no such thing as free money. Tax monies are the people’s monies. I think we can figure out what to do with our money in terms of supporting our own interests much better than the government can? What do you think? Consider this your newest “greenhouse” gas tax, because that is exactly what this “give away” is. Nothing more; nothing less.