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Morning Bell: Cash for Clunkers, A Case Study in Why Obamanomics Is Failing
Heritage.org ^ | 7/31/09 | Conn Carrol

Posted on 07/31/2009 9:02:07 AM PDT by Nachum

If you watch television you’ve seen the ads: “So bring in that old jalopy and get up to $4500 towards the purchase of a new or select used vehicle. That’s right get up to $4500 for that old piece of junk, plus you keep the rebates. You have to hurry! Since funds are limited for this program it’s first come first served!” Well we’re about to find out just how limited those funds were. The Obama administration’s cash-for-clunkers program has been such a “success” that in just the first week of full implementation, the $1 billion originally allocated for the program is about to be exhausted already. Does this mean the program is over? We don’t know. Nobody does. And that is just the beginning of why this program is a perfect illustration of why Obamanomics will fail.

(Excerpt) Read more at blog.heritage.org ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: bho44; bhoeconomy; cash; cashforclunkers; clunkers; democrats; economy; for; obama; obamanomics

1 posted on 07/31/2009 9:02:08 AM PDT by Nachum
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To: Nachum

More Marxist Redistribution of Wealth using our Tax system.


2 posted on 07/31/2009 9:04:12 AM PDT by SoConPubbie
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Comment #3 Removed by Moderator

To: Nachum

It was a $1 billion PR stunt.


4 posted on 07/31/2009 9:06:03 AM PDT by PGR88
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To: Nachum

A nation that destroys perfectly good cars, and taxes the public $4500 each time it does so, in order to diminish a “global warming” that doesn’t exist, is a nation that has clearly lost its mind.


5 posted on 07/31/2009 9:07:01 AM PDT by Defiant (Reaganland vs. Obamastan: Let's go our separate ways.)
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To: Nachum

It would be interesting to learn how many of these new cars were bought from GM and Chrysler.


6 posted on 07/31/2009 9:08:29 AM PDT by kabar
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To: Nachum
“Carmakers and dealers have booked expensive advertising to capitalize on buyers’ interest in CARS, and now will be left promoting a tie-in with a discontinued government program — one that wasn’t supposed to end until Nov. 1..."

If the government can screw up a program like cash-for-clunkers imagine what they can do when they run healthcare.

7 posted on 07/31/2009 9:10:15 AM PDT by 6SJ7 (atlasShruggedInd: ON)
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To: Nachum

And your rank and file leftist won’t make any connection between this and the inevitable failure of socialist healthcare.

The demand for something “free” is infinite. Like gravity, it’s not just a good idea, it’s the “law”.


8 posted on 07/31/2009 9:10:47 AM PDT by MrB (Go Galt now, save Bowman for later)
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To: Nachum

Other people’s money. Of course this is going to be a popular program. They are giving away money via the car dealers.


9 posted on 07/31/2009 9:15:55 AM PDT by La Lydia ( Enoch Powell was right.)
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To: Nachum
And much like most government programs, Congress was incapable of actually estimating how much it would cost. They are now facing the prospect of tripling down on a program only a week after it began.

Is that a record?

10 posted on 07/31/2009 9:17:45 AM PDT by NonValueAdded (if the government makes trading a used car this hard how are they going to handle a doctor visit?)
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To: kabar
It would be interesting to learn how many of these new cars were bought from GM and Chrysler.

LOL - we took advantage of the program and bought a FORD!!!!

We truly needed to replace 97 clunker w/172K miles that got 16 mpg and had electrical problems.

I'm tempted to thank my next door neighbor for sharing his wealth (cash) and making this purchase possible...he was only person in neighborhood who voted for Nobama.

HAHAHA!

11 posted on 07/31/2009 9:24:59 AM PDT by Florida native
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To: screenombre

That’s funny but sad too because that’s what it will be coming in one form or the other.


12 posted on 07/31/2009 9:29:13 AM PDT by beaversmom
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To: Nachum

On average there were ONLY twelve $4,500 “deals” per dealership in the US. And if we ask which “deals” were honored - and in what zip codes - we’ll be called racists...


13 posted on 07/31/2009 9:31:18 AM PDT by GOPJ (Maldives sea levels have NOT risen in 1250 years -Professor Nils-Axel Moerner)
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To: Nachum

I am in a crazy situation due to the cash for clunkers program. i bought a new honda fit on wednesday before the official date of Friday 23rd for kickoff. the law clearly states that a dealer that wrtes a contract before the final rule was issued must assume the full responsiblility for getting the rebate from the government. i signed the contract and turned over my clunker that meets all requirements and wrote them a check for the balance. my check has cleared and they now want me to sign some papers accepting full responsibility for them getting paid by the government or else they want the new car back. i told them to take a hike and they are threatening to snatch the new car. At this point, the new car is locked in my garage and i have told them that i will give them a very short timeframe to deliver my title and then i will file a fraud claim against them under the provisions of the CARS act and start filing whatever other claims i can file for free prior to lawyering up.


14 posted on 07/31/2009 9:35:13 AM PDT by fatrat (extremely extreme right-wing radicalized veteran)
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To: Florida native
On average there were only twelve "grants" for each dealership in the US.

If the car dealer you went to sold more than their "12" they either won't get reimbursed ( and will go broke) or congress will have to dramatically up the amount of money for this poorly though out idea.

Coming up next: health care - oversold - under-financed. Hospitals going under will be worse than dealerships going under. Wait for the big surprise...

15 posted on 07/31/2009 9:36:40 AM PDT by GOPJ (Maldives sea levels have NOT risen in 1250 years -Professor Nils-Axel Moerner)
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To: Nachum

this is good actually especially since this news broke yesterday/today and will drive bam’s poll numbers even lower, ya’ think?


16 posted on 07/31/2009 9:52:54 AM PDT by MissDairyGoodnessVT ("Economy is the method by which we prepare today to afford the improvements of tomorrow"C.Coolidge)
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To: Nachum

bump


17 posted on 07/31/2009 9:54:22 AM PDT by lowbridge (It's not that liberals are ignorant, it's that they know so much that isn't so - Ronald Reagan)
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To: kabar

That’s a good question. I went online last night to see if my Wife’s 95 Windstar qualified for the program. I was given a big “Congradulations!” and was given a list of new vehicles I could choose from. The only problem is that my wife is disabled and we need another minivan for her scooter to go into.

I stuck that into the search engine and came up with 11 possibilities, 10 Fords (Their new 2010 design that looks like a bread truck!) and 1 Mazda 5 series. The Mazda was the most expensive with a sticker of $19K AFTER the $4500.00 rebate, with the cheapest Ford comming in at $16K.

Told my Wife that and she wasn’t too impressed by it. Neither am I....I guess the Disabled who need scooters or other means to get around are S.O.O.L. when it comes to a new car..and this looks indicative of the US Gov Health Care system they want to stick up our Bazoos....


18 posted on 07/31/2009 9:54:42 AM PDT by shredderman (Living in a Blue State, with a Blue Wife, But I'm Red to the bone.....)
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To: Nachum; All
Here's your chance to vote:

936,400 votes as of 10:00 am, 7.31.09

Yahoo-AT&T Poll

Q. The president's progress with the battered economy has been both praised and criticized. How well are his efforts measuring up with you?

Extremely well. We are undoubtedly moving in the right direction. 14%
Fairly well. There's still a long way to go. 9%
Not well at all. His plans are hurting more than helping. 76%
Not sure/No opinion. 2%

19 posted on 07/31/2009 10:06:45 AM PDT by SloopJohnB (FEDGOV.SYS corrupted...Revolt, Re-boot, Abort, Washington D.C?)
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To: Defiant

I agree and will tke it one step further. There are many out here lke us who can’t afford a new car and always buy used. The cars they are destroying are not that old and are most likely more energey efficient than older cars are. So in one action they have hurt the poor and the enviroment with this program.


20 posted on 07/31/2009 10:07:45 AM PDT by chris_bdba
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To: Defiant
A nation that destroys perfectly good cars, and taxes the public $4500 each time it does so, in order to diminish a “global warming” that doesn’t exist, is a nation that has clearly lost its mind.

Tagable...

21 posted on 07/31/2009 10:18:57 AM PDT by GOPJ (Destroy cars to stop nonexistant global warming & tax citizens $4,500 each time? Crazy.)
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To: Nachum

What a joke. This billion dollars is more than the stimulus package. Gone in a week. That’s 222,000 cars sold and free money to those with clunkers(ie. democrats). And they are voting to double it. All funded by increased national debt.


22 posted on 07/31/2009 10:24:58 AM PDT by spyone (ridiculum)
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To: fatrat

How about calling your congress critter’s constituent services office? This clearly falls in their purview, as it’s a gov’t program at issue.


23 posted on 07/31/2009 10:31:57 AM PDT by Eroteme
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To: Nachum
my wife works with a woman who was considering doing this. My wife said, so where does this money come from? The lady, goes, "uhhhhh, Obama...". My wife said, "no, out of my pocket"

I was so proud of her!

24 posted on 07/31/2009 10:44:32 AM PDT by CharlieOK1 (Jimmy Carter: Now available in 1/2 black)
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To: Nachum

I can’t believe the great looking “clunkers” that are being traded in. Most look much better than the 81 truck and 90 Honda I have, both of which are paid for and run great.

I was really offended to see that the “clunkers” have to been completely destroyed and their parts cannot enter the secondary marketplace, artificially driving up the cost of parts for those who see no need to buy a new car or truck that only gets 2 MPG better than their old truck.

And what happened to “Reduce, REUSE, RECYCLE” and how does the environmental cost of manufacturing brand new cars beat the cost of reusing an older car with many more years of life?


25 posted on 07/31/2009 10:45:03 AM PDT by HEM
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To: PGR88
It was a $1 billion PR stunt.

And on its way to being a $3 billion PR stunt.

26 posted on 07/31/2009 10:51:18 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: Eroteme

Yeah, he is on my list. i also plan on emailing the Office of inspector general and reporting this as a possible case of fraud under the CARS program.


27 posted on 07/31/2009 11:20:52 AM PDT by fatrat (extremely extreme right-wing radicalized veteran)
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To: Nachum

Per WJR radio Detroit, congress is rushing though, another 2 Billion for this program.

Don’t see how this well help me get a job however, (or anyone else unemployed)?


28 posted on 07/31/2009 12:35:48 PM PDT by Springman (Rest In Peace YaYa123)
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To: screenombre

Or, “Cash for Cripples!”


29 posted on 07/31/2009 12:37:16 PM PDT by 2harddrive (S)
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To: Florida native

I have heard that the most FREQUENTLY bought new car has been a LEXUS!!


30 posted on 07/31/2009 12:38:35 PM PDT by 2harddrive (S)
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To: La Lydia; Nachum; All
Other people’s money. Of course this is going to be a popular program. They are giving away money via the car dealers.

The Clunkers"R"Us government just declared the popular 'Clunkers for Cash' CARS program a success and, before going home, "found" another $2B to extend the program. As luck would have it, the money was in the same place Congress "found" the first $1B of "free money" that people burned through faster than was expected.

Just remember:
Democratic (program, President, politician, policy, intervention etc.) = popular and historic Republican (program, President, politician, policy, war etc.) = unpopular and controversial

31 posted on 07/31/2009 12:52:32 PM PDT by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: SoConPubbie
0bama just said the “cash for klunkers” program is working so well it must be refunded with another $2 billion cash infusion.

If this incentive (our tax dollars) creates such great demand, imagine the overwhelming demand if our tax dollars fund 100% of the purchase price of a new car!

It’s magic I tell ya, it’s magic!

32 posted on 07/31/2009 1:20:34 PM PDT by Dream Warrior (Paving the way for the Avenging Angel.)
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To: Defiant; Jim Robinson
A nation that destroys perfectly good cars, and taxes the public $4500 each time it does so, in order to diminish a “global warming” that doesn’t exist, is a nation that has clearly lost its mind.

Ding, ding, ding! Stop FR. - We have the FR Post of the Day.

liberalism is a mental disorder.

33 posted on 07/31/2009 2:51:08 PM PDT by bill1952 (Choice is an illusion created between those with power - and those without)
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To: 2harddrive
I have heard that the most FREQUENTLY bought new car has been a LEXUS!!

That's amusing. Much of the money will head out of the country to Toyota, then we'll have to pay back the money we borrowed to fund this to our foreign lenders. Some stimulus!

34 posted on 07/31/2009 3:16:32 PM PDT by TwelveOfTwenty (Hey Nancy, how many jobs have been lost since you and the Democrats took Congress?)
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To: chris_bdba
Fox News yesterday showed them taking a 1989 Ford Truck which looked in pretty decent condition, and killing it. They poured some pink liquid in the engine (something silicate) and then turned on the car, to let it run until it seizes up.

The truck was probably worth about $2000 on Craigslist, even if it has high mileage. Truck mileage hasn't changed much in 20 years, maybe it gets 12mpg instead of 15. What a stupid waste, to take something useful and valuable and destroy it. And then, to add insult to injury, they add to the national debt by $4500 each time they do it. It was hard to watch them ruin that vehicle.

35 posted on 07/31/2009 4:10:27 PM PDT by Defiant (Reaganland vs. Obamastan: Let's go our separate ways.)
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To: Moonman62

no gubmint program is EVER a failure, it’s just “underfunded”.


36 posted on 08/03/2009 9:31:36 AM PDT by WOBBLY BOB (ACORN:American Corruption for Obama Right Now)
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