Cash for Clunkers: Trade in American, Buy Foreign

townhall.com ^ | August 10, 2009 | Dick Morris and Eileen McGann

[kellynla]

The only part of the stimulus program that is working, the cash-for-clunkers program is, in reality, a subsidy to foreign car companies, proving that Barack Obama is the best president Japan ever had.

The Department of Transportation reports that the ten leading trade-ins are all American branded cars while six of the top ten new cars purchased - and four of the top five - are foreign. So the United States Senate is about to pass additional funds to subsidize the trade-in of American cars and the purchase of foreign cars.

DOT reports that the following are the ten top trade-ins, all American:

1. Ford Explorer 2. Ford F150 Pickup 2WD 3. Jeep Grand Cherokee 4 WD 4. Jeep Cherokee 4 WD 5. Dodge Caravan/Grand Caravan 6. Chevrolet Blazer 4 WD 7. Ford Explorer 2 WD 8. Ford F150 Pickup 4 WD 9. Chevrolet C1500 Pickup 2 WD 10. Ford Windstar FWD Van

And the top ten new car purchases, subsidized by the American taxpayer, are mainly foreign vehicles:

Top Ten New Car Purchases: Cash for Clunkers

1. Toyota Corolla 2. Ford Focus FWD 3. Honda Civic 4. Toyota Prius 5. Toyota Camry 6. Ford Escape FWD 7. Hyndai Elantra 8. Dodge Caliber 9. Honda Fit 10. Chevrolet Cobalt

It is a violation of the World Trade Organization rules to enact a public subsidy program and skew it toward only domestically produced products, so the Congress has no choice but to extend the program to all comers. No choice, that is, but to not spend the money in the first place.

Cash for Clunkers will do wonders for the Japanese economy, but its impact on the US job situation is problematic. This unintended consequence is a great illustration of what happens when the blunt tool of government subsidy is applied to the fine tuning of a free market economy. Government planners keep getting it wrong. That's why socialism is such a bad idea.

So Obama can boast of a great success in taking American cars off the road and replacing them with foreign cars. Great going!

[kellynla]

"The only part of the stimulus program that is working, the cash-for-clunkers program is, in reality, a subsidy to foreign car companies"

BRILLIANT

[caver]

I plan on subsidizing a foreign car company. My next vehicle will be a Toyota.

[Thermalseeker]

I plan on subsidizing a foreign car company.

I'm not sure what my next car will be, but one thing is absolutely certain. Whatever my next car is it will not under any circumstances be a GM or Chrysler product. I refuse to subsidize Fascism....

[JRios1968]

Somewhere, Admiral Yamamoto is smiling...

[kellynla]

“Somewhere, Admiral Yamamoto is smiling...”

And the Japs & Germans are LAUGHING ALL THE WAY TO THE BANK...
“DUMB-ASS AMERICANS!”

[Venturer]

If we weren’t subsidizing Japan we would be buying cars with American names filled with Mexican parts.

This one was easy to see coming.

[Caipirabob]

Cue the

REAL MEN OF GENIUS song...

Mr. "Subsidizes foreign auto-manufacturers"!

This is for you, Mr. I-don't-know-didly-about-economic-policy-but-still-passed-this-feel-good-legislation-because-it-polled-well-even-though-the-country-is-broke!

Singer:I can feeel the stim-mu-lus!

So now 4 out of 5 cars sold take those American tax dollars overseas never to return...

Singer:My kids are star-ving!

But you can feel good, because that 1 of 5 cars are made my American unions that contribute to democrats

Singer:Show me the mo-nee!

Yes, this is for you, Mr. I-don't-know-didly-about-economic-policy-but-still-passed-this-feel-good-legislation-because-it-polled-well-even-though-the-country-is-broke! This program is just one more shovel load of fecal matter you're dumping on the American people, but it polls well so you can smile and say "Mission accomplished"! After all, you did stimulate the economy, and the nation of Japan is grateful for it...

Singer:Domo Ari-ga-to!

[WayneS]

The Camrys (including the hybrids) and Corollas which Toyota sells in the U.S. are actually made in the U.S. That means the consruction and sale of these models helps the U.S. jobs market.

It took me about 10 seconds of research on the internet to find that out. Perhaps the writer of the article should have done the same.

[DB]

How about basic economics...

Destroying functional things of value and replacing them with new expensive ones purchased via more debt doesn’t make a nation wealthier. It makes it poorer.

Stupid is as stupid does...

[KevinDavis]

So we are not at war with Japan... My next purchase it going to be a car either from Japan or South Korea... I’m tired of my money going to union bums...

[kellynla]

" My next vehicle will be a Toyota."

And on your next trip to Japan, I'm sure the locals will show their appreciation...maybe you'll get “fwee one”...but don't hold your breath.

[Bushwacker777]

I assume the older cars with wind up in the scrap heap. That means owners who normally might have had to repair cars and kept them going a few more years will not have to do so. That means the American automakers will lose all that money they would have made from parts that would have had to be ordered. Now the foreign car makers will make money from the need for parts for their cars in the future.

[kellynla]

“If we weren’t subsidizing Japan we would be buying cars with American names filled with Mexican parts.”

Better to keep your thoughts to yourself and let people think you a fool than post them and remove all doubt.

[caver]

Go ahead and support Obama and the UAW. I am finished with them.

[kellynla]

and the prices of used cars will go up...

[JohnLongIsland]

kellynia,
I gather you are one of the very few that buys American made televisions instead of foreign made. You only hurt yourself and your family and support the socialist agenda and philosophy by buying an inferior product that is more expensive (be it autos or whatever).

[Murp]

There is an apparent discrepancy in sales reports relating to which vehicles have been purchased. The D0T counts not the total cars and trucks sold, but identifies the leading sellars body style. Because compact cars have fewer body styles than say, an F150, it appears they are being over counted, while in fact the F150, because of their numerous body styles are being under counted. Edmunds used cars disputes the D0Ts conclusions. It will be interesting to see what vehicles really are being bought.

[kellynla]

I support my fellow Americans, genius.

The Japs & Germans NEVER purchased a dime's worth of my merchandise over 30 friggin’ years.

And my neighbors never killed one American Soldier, Sailor, Airman or Marine.

Semper Fi,
Kelly

[WayneS]

Oh, and Honda manufactures Civic Sedans in Ohio. Last time I checked, auto plants in Ohio employed people from the U.S. work force.

So, with Toyota Camrys and Corollas, and Honda Civics all being made in the USA, it looks like 7 of the top ten, and four of the top five, new cars sold are made in the USA.

The story loses a bit of its punch once that is known, doesn’t it?

PS - It appears that Toyota has a plan in the works to build the Pruis here as well, within a year or so.

[McGruff]

It's hard to tell what constitutes 'An American Car' these days.