Archive for the ‘Cash for clunkers’ Category

My Camera Editorial Advisory Board comment published on Aug. 8, 2009:

What a happy little scene for car dealers and makers. Americans receiving up to $4,500 from cash for clunkers race to showrooms so government can help foot the bill for their new cars. It appears President Obama and Congress’ $3 billion (so far) taxpayer-funded program is the stimulus program automakers should have had rather than bailouts. All seems peachy as those qualifying smartly take advantage of “free” money.

Unfortunately, there is no such thing as “free” money and the tax and spend liberals are acting more like Robin Hood than Santa Claus. The government subsidy comes out of taxpayers’ pockets and robs America’s future by adding to the $1.8 trillion budget deficit. In addition, the program is driving up new car prices and driving down car salvage operations. It doesn’t create jobs or national wealth, and there is no indication that once the give-away is over car sales will maintain the current burst.

Giving tax dollars to people who were going to buy a new car anyway in the relatively near future makes no economic sense. The poor who cannot afford to take advantage of the give-away still cannot afford to buy a new car. And, the rich who can afford it have every right to the cash.

The environment is supposed to be a big beneficiary, but that result is cloudy at best. Weighing in that equation is the energy wasted by smashing clunkers and preventing even worse offenders from trading up at the salvage yard.

Source: Daily Camera

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