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'Cash for clunkers' breaking down, but not before hurting lower-income buyers, auto recyclers
The Oregonian ^ | Friday July 31, 2009, 9:10 AM | Elizabeth Hovde

Posted on 08/01/2009 8:12:57 AM PDT by PureSolace

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To: MarkL

This was a very well thought out, but worrisome, comment.


21 posted on 08/01/2009 8:43:02 AM PDT by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: The Antiyuppie
Yes, either lose weight, or drop dead. A Twofer!

Wrong, the democrat want you to lose weight and drop dead and stay out of the hospital unless you are a minority democrat voter.

22 posted on 08/01/2009 8:44:30 AM PDT by org.whodat (Vote: Chuck De Vore in 2012.)
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To: Woebama

The Senate won’t get around to this crisis until next week. Contact your Sens to kill this program.


23 posted on 08/01/2009 8:44:48 AM PDT by NewHampshireDuo
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To: org.whodat

I posted this on another thread but it’s highly relevant to this type of program:

It’s the fallacy of the broken window. A thug breaks a window in a store. The store owner buys a new window. Presto, the economy has benefited because the glass seller has a profit. Should we go around breaking windows (or destroying cars) to help the economy?

NO!

The storeowner would have bought something else with the money for the window, say a new accounting program to make his life easier. He would have had the window and the new accounting program and been better off, while his spending would have been the same.

In this case a new car is sold and an old car is destroyed. The tax money to overpay for the old car and destroy it could have been spent on something useful — so the economic effect would be the same — and we’d still have an old car on the road for people that can’t afford a better auto.


24 posted on 08/01/2009 8:45:21 AM PDT by Woebama (Never, never, never quit)
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To: Woebama

The Democrats love to steal from the unborn!!


25 posted on 08/01/2009 8:46:50 AM PDT by org.whodat (Vote: Chuck De Vore in 2012.)
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To: MarkL

They purposely exclude the oldest vehicles from the program, knowing that the vehicles they’re destroying would probably have been the next step up vehicles for those at the low end of the income spectrum. This makes it less and less likely that the poor will be able to have their own vehicles in the future. It also (as you stated) will drive the cost of used cars up, and make maintenance more difficult and expensive for those who have cars in that age range.
________________________

I heard a caller from France on talk radio who said that Americans have it wrong. They think that people overseas are all about the environment when, in fact, if they can afford a car the only car they can afford are the tiny ones. It’s not that they like them; it’s that they’ve been boxed into a corner.


26 posted on 08/01/2009 8:48:47 AM PDT by JavaJumpy
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To: Woebama

As we all know, the supposed “energy savings” is a smokescreen for something else. When I think of all the parts that are going to be made unusable, it sickens me. The parts remanufacturing industry was one of the first “recyclers” and is very efficient. Don’t think for a moment that your old cars have been going into landfills complete. The figure on how much energy they save would be astounding.

Obviously, this is an indicative of a plan...but for what?


27 posted on 08/01/2009 8:49:57 AM PDT by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: Oldexpat
We stopped our purchase and will wait til they run out of money for this program.

Good move.

Wait 6 months to a year and the used car lots will be stuffed with almost brand new vehicles that have been Repo'd.

28 posted on 08/01/2009 8:53:42 AM PDT by SnuffaBolshevik
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To: Woebama
I posted this on another thread but it’s highly relevant to this type of program:

It’s the fallacy of the broken window. A thug breaks a window in a store. The store owner buys a new window. Presto, the economy has benefited because the glass seller has a profit. Should we go around breaking windows (or destroying cars) to help the economy?

NO!

The storeowner would have bought something else with the money for the window, say a new accounting program to make his life easier. He would have had the window and the new accounting program and been better off, while his spending would have been the same.

In this case a new car is sold and an old car is destroyed. The tax money to overpay for the old car and destroy it could have been spent on something useful — so the economic effect would be the same — and we’d still have an old car on the road for people that can’t afford a better auto.

...except in this case, the government is offering money to "have the windows smashed."

29 posted on 08/01/2009 8:56:18 AM PDT by PureSolace (Trust in God)
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To: nitzy
I envision a scene in my mind where the auto dealers conduct a sacrifice of the vehicle. They ceremonially destroy the car while dancing, chanting and praying to the earth-god asking her to spare us from global warming.

I wonder how much longer it's going to be before they start taking living victims?

30 posted on 08/01/2009 8:58:20 AM PDT by Mr Ramsbotham ("Baldrick, to you the Renaissance was just something that happened to other people, wasn't it?")
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To: PureSolace

I have old appliances. Will there be a cash for old appliances program?


31 posted on 08/01/2009 8:59:20 AM PDT by Joan Kerrey
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To: The Antiyuppie
It's just far too easy to say that those who may just want to enslave us are just stupid or incompetent. You can bet that people like George Soros doesn't support morons, and that he and his ilk are in on the strategy sessions from day 1.

Mark

32 posted on 08/01/2009 8:59:54 AM PDT by MarkL (Do I really look like a guy with a plan?)
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To: PureSolace

I bought a new Fusion in May. I had an ‘88 car that would have qualified as a clunker, I think, but took the re-bate and gave the clunker to somebody who needed transportation.

I was attached to my clunker... it is still a good car that didn’t need to be crushed.


33 posted on 08/01/2009 9:00:02 AM PDT by lonestar (Obama is turning Bush's "mess" into a catastrophe.)
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To: Joan Kerrey
I have old appliances. Will there be a cash for old appliances program?

Shhhh! There will be after they read that!!! LOL!

34 posted on 08/01/2009 9:01:31 AM PDT by lonestar (Obama is turning Bush's "mess" into a catastrophe.)
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To: Woebama
They allocated another 2 billion — so 750,000 affordable cars are going to be destroyed.

Damn shame. But wait. The fools that think they are making a real deal now have a car payment for something that is a headache. Clunker was probably paid for and probably had more miles. Dealers are upset that now they have a clunker that they cannot salvage parts. Same as goes health care. Maybe they will allow salvaging parts of the old that are let to die with a pill instead of life saving care.

35 posted on 08/01/2009 9:01:35 AM PDT by Logical me (Oh, well!!!)
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To: PureSolace

***It’s unbelievable that the government has set aside $1 billion of taxpayer money to remove roughly 250,000 drivable vehicles from the road.***

that is the point! Keep the poor into mass transit!


36 posted on 08/01/2009 9:02:39 AM PDT by Ruy Dias de Bivar
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To: PureSolace

Destruction is the name of the game.
That fact that the cornerstone of this ‘program’
involves stripping the ‘clunkers’ of their most valuable
parts, thereby removing a huge part of the livelihoods
of people who’ve been in this industry probably for generations, tells you a LOT about the Leftist, Big Government mindset, and how COMPLETELY they want the
advantage of a ‘clean slate’ and how far they’re willing to
go to get it.
Not so oddly, the same mindset was in operation when the
few remaining “electric cars”, fifteen or so years ago, which had lots of people excited in California because of their potential, were ordered DESTROYED by a special Board of the State in CA, never to be thought of , or referred to again.


37 posted on 08/01/2009 9:08:14 AM PDT by supremedoctrine (Time is the school in which we learn that time is the fire in which we burn.)
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To: MarkL

The program could easily destroy 2 or 3 million cars a year if it became permanent. In a decade, that would be 20 or 30 million older cars taken off the road. I think this would be a very noticeable change in car “demographics”. There’d be fewer older sub-$4500 cars and more smaller, newer cars. Just like Europe!

I wouldn’t be surprised if some of the lefty groups have thought this through with particular social ends clearly in mind. It’s ironic and unfortunate how nicely the left’s social engineering tendency fits with the corporate world’s anti-competitive tendency and willingness to snuggle up with the government if it decreases their risk. The clunker program has the trifecta of pleasing leftist social activists, opportunistic politicians, and the auto companies, and is therefore very likely to become permanent.


38 posted on 08/01/2009 9:16:28 AM PDT by Yardstick
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To: PureSolace

Get this,

My son works at a dealership.

Cash4Clunkers Step 1——>Seize the engine so it cannot be used again by pouring chemicals in the carb to seize rods and bearings.


39 posted on 08/01/2009 10:00:18 AM PDT by ImJustAnotherOkie
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To: PureSolace
That last part, the destruction of engines, is causing heartburn for more than a dozen already hurting auto-parts suppliers who have had to file for bankruptcy this year. As Michael Wilson, executive vice president of the Automotive Recyclers Association, told a reporter, "Why throw away good parts when the supply chain is in jeopardy? It doesn't make a whole lot of sense." Catherine Tsai, in a story she wrote for Associated Press, reports that engines and drive trains account for 60 percent of recyclers' revenue from a used vehicle.

And, how much will a recycler offer me for my engine? $50?

How much would they charge me to buy my engine back?

How much will a recycler offer me for my entire car? $250?

How much would they charge me to buy my car back?

IMO, recyclers, a.k.a. junkyards need to put up or shut up.

40 posted on 08/01/2009 10:01:37 AM PDT by Ol' Dan Tucker (People should not be afraid of the government. Governement should be afraid of the people)
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