Thursday, July 30, 2009

Bears and Donkeys: Cash for Clunkers


In an era of mass-government spending, why not throw in a Billion dollars to help struggling dealerships get back on their feet? Think of it as a cure for the morning after. At least that was one thought lawmakers had. Another is to help get rid of gas-chugging cars for good, a move that will put a smile on Al Gore's face, for sure.

But the CARS program (Car Allowance Rebate System), which includes the Cash for Clunkers special, is really an unecessary evil. Given the standard rate of aging cars, most cars that will take advantage of the Clunker program were either going to die or be traded anyway. Only a small percentage of Americans are actually motivated to bring in their old vehicle to get a new one, just because they can.

And why not include used cars on the deal? There are tons of used cars out there that don't need to be assembled at a factory (where some say 30% of that car's lifetime emissions come from), and used cars are cheaper, too.

The program is merely enticing Americans to get into debt, in a time when funds are tight for everyone, and when often times these "clunkers" are already paid off. It seems odd for the government to spend so much of our money just to encourage us to gather more debt.
But with the way they're spending our money these days, it doesn't surprise me that they care more for Corporations than Citizens. Their $700 million dollar horsey bailout package is evident that they love horseys more than humans. At least Corporations provide jobs.

Thanks for reading. More to follow.
-Biggs

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