v'ܩ Cash for Clunkers
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Cash for Clunkers

June 14th, 2009

Cash for clunkers is a plan by Congress to give you 3500 - 4500 dollars in hopes that you will make a bad decision with your money to help out the Detroit automakers.

This table from USAToday.com gives a good summary of the program.

So, if you have a large truck that gets 13 miles to the gallon and you trade it in for one that gets 15, the government will give you 4500 to destroy it. Tell me again what this accomplishes? Let’s see, it puts more Americans further in debt by enticing them to pay more than they can afford for a new car. I can’t remember, was it this crisis that started by people buying things they couldn’t afford with money they didn’t have with help from the government? Oh yeah, and that car will devalue by more than the 4500 they get from the government the moment they drive it off the lot. And by government I mean you and me, the American taxpayer. This does not help the consumer, it is just a round-about way of writing a 3.5 to 4.5 billion dollar check to the car makers. (There is a limit of 1 million vouchers.)

We are once again messing with the free-market, and that always works out so well for us. Currently, the idea is hurting sales because people are waiting to see if they can get free money from the government. So, people who were already planning on buying a new car are going to now get 4500 off because the government wants to help sales. Great idea. I’m sure nobody will try to take advantage of Universal Health Care either. Right.

Millions and millions of people drive cars to work every day. Few people have to opportunity to be without a vehicle. If these companies can’t find a way to make money in this environment, they really deserve to fail. We have already given them billions and billions of dollars, why do we need to continue to give them money? What makes them so special. I’m sure my company could sell more software if the government gave everyone $4500 to buy it. Why aren’t they doing that? I guess it is because we aren’t “too big to fail” yet. Maybe someday we will get billions of dollars because we are too big to fail. Of course, by that time billions of dollars is what it will take to buy a loaf of bread due to the currency being worthless. Cash for clunkers is yet another poorly thought out bill by our Congress.

Author: Derek Clark Categories: General Politics Tags:
  1. jaxonllc@aol.com
    June 15th, 2009 at 13:44 | #1

    My dad swears by the car buying process here: http://excarsalesman.typepad.com/

    I haven’t tried it yet, but I might because it looks good. I have an old civic that doesn’t qualify :(

  2. Jeff the Patriot1
    June 24th, 2009 at 20:42 | #2

    “We are once again messing with the free-market, and that always works out so well for us”

    Wow you think we have free markets, that is a good one.. !!!!!

    HOw’s the health industry going with the “free” m,arket.. our healthcare costs twice as much as any other major economy and no it isn’t regarded the best either, unkless, iof course you have extra money to blow trying to find a good doctor.

    Free market.. Japan sends 2.3 million cars here and imports about 10000.

    Korrea ships more than half a million here and imports a few thousand as well.

    Where is this free market? I’d like to see it sometime.. how about the free market with Mexico, in which Mexican farmers had to compete against farmers subsidized by the US taxpayer.. wow, Mexican farmers couldn’t comete.. what a surprise.. musta been the free market principles right? Not the subsidized US growers… or .. for the US automotive industry, it certainly couldn’t have anything to do with Touyota having a 50% marketshare in Japan (GM had this much in the US once.. BEFORE we “opened” ouor markets of course…

    How about taxes , healthcare, pensions.. these are all things absorbed by US business which generalyl are not paid by the foreign competitors.. they are naitonalized health care, pensions etc…

    The businesses here are being crushed by bad trade decisions that put our own companies at a disadvantage.. the only thing it has been accomplishing is a lower standard of living for working americans.

    25 years ago, there were 650000 gm workers.. how man y are there now? Less than a hundred thousand… does the entire Toyota US manufacturing force of 30000 make up for that? Gee wally.. let’s just give them all of our good jobs and be done with it.. file bankruptcy and start over.. it’s the american thing to do, right.. all in the name of “free markets” … go ahead and rape, pillage and plunder the USA in the name of free markets.. thats what everyone has been doing, and the end result is bankruptcy for this country ….
    We are well on the way… the last few years have seen 600 billion plus trade deficits EACH Year.. that is money going overseas that ends up buying our bonds and we pay on it for years.

    We had a banking crisis.. so let’s quit spending and make it a depression. Sounds like a great plan. What would really help is if all the patriotic?!!? foreign car lovers would quit buying that foreign metal… There is big money in autos.. and the fact that Japan and Korea are soaking it all up is damaging this country’s economy.

    What has happaned to GM is pathetic.. there is no other country in the World that would have such a strategic asset as GM go and claim BK. That is a disgrace and should be an embarassment to this country. Le’ts cheat the workers out of their retirement so that Toyota, Honda and Hyundai can have “FREE” access to our market while their market is all but closed to foreign competition

    Anyone who thinks we have any free ma rkets should have their iq’s checked because they aren’t too bright .. all you have to do is open your eyes to how this system works to know it’s all about who has been bought and paid for.. follow the money. Free markets are a complete fabrication of reality.

  3. June 24th, 2009 at 23:18 | #3

    I don’t think you even know what “free market” means. You are talking about trade, and only in the context of car companies. Our trade with other countries is not what hurts us. Just because our car makers made bad cars doesn’t mean the rest of the country doesn’t export things that people use. Try computers. And software. And Coke and Pepsi. Lots of companies from the U.S. make a ton of money overseas.

    GM failed because they made a lot of bad decisions and a lot of bad cars. Go ahead and complain about people buying Honda’s and Toyota’s, but their cars actually work. It isn’t America’s fault that GM went bankrupt, it is GM’s fault. Stop trying to place the blame where it isn’t deserved. GM sold over 9.3 million cars in 2007. Toyota sold just a few less. GM lost 38 billion dollars. Toyota made 17 billion dollars. Do you think it is really GM being screwed by trade?

    Just for the record, free market is an economic term that describes a market which is free from government intervention (i.e. no regulation, no subsidization, no single monetary system and no governmental monopolies). Pretty sure the subsidies you mentioned aren’t a part of the free market. And let me know where you can find better health care than America. Cheaper yes, better no.

  4. July 25th, 2009 at 00:04 | #4

    Wow I’m so glad that I read this post.

  5. September 3rd, 2009 at 11:01 | #5

    It’s just another government driven asset bubble. It generated a whole bunch of short term sales tax revenue and production. The new car payments that everybody assumed will, however, deplete any expected revenue generation, their normal purchases over the next four to six years would have created.

    In the end, they and their respective local economies will be worse off.

  6. September 7th, 2009 at 22:59 | #6

    It’s just another government driven asset bubble. It generated a whole bunch of short term sales tax revenue and production. The new car payments that everybody assumed will, however, deplete any expected revenue generation, their normal purchases over the next four to six years would have created.

    In the end, they and their respective local economies will be worse off….

  7. October 20th, 2012 at 10:07 | #7

    Appreciation for this ifnormaotin is over 9000-thank you!