They allocated another 2 billion — so 750,000 affordable cars are going to be destroyed. If you don’t want to buy a new car, used cars just got more expensive. If you are a low wage worker or need an inexpensive car for a teen or as your second vehicle — this hurts you.
Another thing to recall about the “Cash for Clunkers” program is how it hurts the poor. The program will take these “clunkers” off the street and give them to the government to destroy. But these are precisely the kinds of cars that poor or fixed-income people tend to purchase. Most of these “clunkers” are of course in fine shape, but they are not “green” enough according to government determinations. So poor people who cannot afford to purchase new, government-approved (and thus artificially expensive) automobiles will be told to “go take a hike” – literally!
The government having melted down these “clunkers,” the market in low priced used cars will dry up, thus driving up cost and further hurting poor and working people as well as seniors and others on fixed income. Grandma who just needs a cheap old car to get down to the pharmacy for her prescriptions will thus be forced to walk or hire a cab, as the finance companies will take a look at her social security income and say “next!”
Cash for clunkers is an attack on the poor for the benefit of government-connected Big Auto big-wigs and GMAC-style bankster/moneylenders. As with most government programs, the poor get the short end of the stick.
Ah....but having all the poor walking instead of driving will cut down on the obesity problem. Another triumph for our skinny president and his central planning czars!
I just had a brilliant idea (hey, most of the times I’m humble)...
You know the way you have to have an Environmental Impact Report (EIR) before you can undertake any significant development project? Well I think we should require an EIR (ECONOMIC Impact Report) for any government program. And a requirement must be to follow Henry Hazlitt (”Economics in One Lesson”) guidelines in analyzing them, wherein a detailed study of the consequences is undertaken. It should aim to spell out who loses, who gains, how much and what’s the net effect. Like the environmental report there should be a review and comment period by the public before it gets voted on.
The CBO does some rudimentary study like that today but it can be ignored - moreover, the review and approval process is not the same.
I can see it now: low income earners with a clunker, will be sucked into buying a new car....low interest rates....then a few months down the road, the guy losses his job, hence unable to make his payments...guess what, the Lone President will ride up, announce a program to assist the unemployed to keep his car...
I have old appliances. Will there be a cash for old appliances program?
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.
***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!
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.
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.
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.
It would probably have been cheaper and wiser for the government to stimulate the economy by giving each TAXPAYER $2500 for us to spend as we wish. Or how about a two month holiday from paying federal taxes? It’s good to spread the wealth around (or so I’ve heard.)
Obama is playing the same economy destroying games that FDR played.
I see this crap leading to the US becoming a nation of motorcycle riders, much like many asian countries. Used, older cars will become “evil”, small motorcycles will again become popular because it will be the only thing poor people can buy. Have any of you seen the photos of 4 or 5 people, a family, riding small motorcycles in Indian and other places? Welcome to third world USA, courtesy of the dimwit/communist party and Bozo the WH clown.
Can’t make an omlet without breaking some eggs!!! Even if the omlet turns out to be rotten.