Cash for Clunkers – a Bad Law With Little Benefit and a Big Cost
Well, in spite of my best efforts, it looks like the Cash for Clunkers legislation for used cars is going to pass Congress. Consumer Reports does a good job explaining how the program works on its Cars Blog: “The plan would give vouchers worth $3,500 to anyone who trades in a car that has a combined EPA rating of 18 mpg or less on a new one that has a combined EPA rating of 22 mpg or more. If the old vehicle is replaced with a new one that gets at least 10 mpg more than it does, the voucher would increase to $4,500.”
About the only thing Congress has done right with this bill is limit spending on it to $1 billion. It’s a big waste of money, but it’s not as bad as the original $4 billion that was proposed.
My biggest complaint with the legislation is it only helps 285,714 buyers at most. That amount is not going to save the U.S. auto industry by any stretch of the imagination. Plus, the law is encouraging 285,714 people to take on a heavy debt load in the midst of a recession. Six months from now it will be interesting to see what percentage of these buyers default on their loans.
Maybe, just maybe, President Obama will see the foolishness behind this legislation and veto it. One can only dream. Can anybody convince me why this isn't a waste of money? Comment below.
Photo © Getty Images
This has to be the worst plan that B.O. and his Congressional running puppies have come up with to date. They’re using *our money* (again) to reward a select few, bragging about what smart fellows they are, while screwing the vast majority of Americans. Plus, this “program” is, in fact, a “reward to some folks who have been driving planet-killing gas guzzlers over the past 25 years.
I wonder what President Obama will say when someone asks him why turning in an 18-mpg vehicle for a 22-mpg replacement gets you $3,500 in taxpayer’s money, while turning in a 20-mpg vehicle for a 40-mpg replacement gets you less than diddley squat!! Oh well, the American public wanted “change”, and they got it. Our political “leadership” changed from casual ineptitude, to dedicated stupidity!!