Remember that cool new government program that promised 3,500 - 4,500 bucks for your old gas-guzzler to be used for the purchase or lease of a new vehicle? That program, Cash for Clunkers, sank quicker than...well... an Oldsmobile in the Chappaquiddick.
On the surface, this seems like a pretty good idea. An incentive to buy, stimulate the economy, and even help the environment by getting rid of old clunkers for more fuel-efficient cars. You better get Maaco baby, because the rusty truth is showing up big time.
Let's take a look at this government-induced boondoggle.
There had been a $1 billion budget for rebates for new car sales in the program. It went bankrupt after the first week. In addition to a failed government plan, the flawed economics is simply this, we are subsidizing taxpayers with taxpayer money. That is not going to help our (USA's) net worth.
OK, so what, it's our money, why should the fat cats benefit and not us? The simplicity and emotions behind that is what drove so many folks to the car dealer. I am not saying you should have stayed home. But don't candy-apple coat it folks, you are going down to get a piece of a new welfare program paid for by the taxpayer.
Additionally, there is something fundamentally wrong with destroying vehicles that are still viable while increasing more debt. This will not earn us any A-pluses in economics-101. Whatever, get while the getting is good.
As per the government, "the program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in."- cars.gov
The Wall Street Journal summed it up this way, "By this logic, everyone should burn the sofa and dining room set and refurnish the homestead every couple of years."
This program very well may be a shot in the arm, almost like a hit on the ol' turbo boost, it will get you there fast, but in the long run it will cost you more money and make you run out of gas quicker; yeah I know, but the ride was fun.
Secondly, the bankruptcy of this program should sound off like an old-fashioned Mac truck air horn. How on God's green earth, pardon me, let me re-phrase that for my more PC readers; how on this spontaneously combusted green earth can you expect this government to run health care or crap & trade, when they can't even manage to run Cash for Clunkers?
Lastly, certainly not least, in fact the most important aspect of this failed policy is how the government is driving this program head on into Freedom. This Cash for Clunkers program has a dangerous stipulation when you or the car dealer logs onto the government's web site.
That stipulation was publicized by Glenn Beck and below is the video explaining it. I implore you to check it out and afterward reflect on all those complaints about the Patriot Act.
The feds tell us, "Consumers should expect that all information collected through the CARS Program will be kept confidential. Social Security numbers are not required for a CARS transaction." - cars.gov. BUT, what they are not telling you is this:
"This application provides to the DoT CARS system. When logged on to the CARS system, YOUR COMPUTER is considered a FEDERAL COMPUTER SYSTEM AND IT IS PROPERTY OF THE United States Government, any and all uses of this system and ALL FILES on this system may be INTERCEPTED, MONITORED, RECORDED, COPIED, AUDITED, INSPECTED, and DISCLOSED to authorized CARS, DoT and law enforcement personnel, as well as authorized officials of other agencies, BOTH DOMESTIC AND FOREIGN." (Emphasis my own)
The House just approved $2B more for Cash for Clunkers. Oh, I forgot it is the program formerly known as Cash for Clunkers. Yes, the Obamacracy as with many pop icons changed its name; it is now officially dubbed the Car Allowance Rebate System (CARS).
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