The cash for clunkers program has given taxpayers a valuable lesson...
Taking a good idea and making it bad: The government should encourage good behavior and we all should work at making this country better. However the clunker program should have had a cap of $1000 or maybe even $2000 per buyer. Rather the offer was up to $4500 per buyer and the market force was distorted.
An inability to simply say NO: The program quickly burned through the first billion that was set aside and then rather they saying Yeah, congress acted as if they were in Vegas and shoveled out another $2 billion into the pile. Remember they are playing with our money.
This was focused on the short term and not the long term: Everyone ran out and cashed in their old car for a new one...sales skyrocketed for auto makers. Now what about the 4th quarter? Most buyers have already bought what they wanted and we don't buy cars every month...its not like bread, milk or eggs. The car dealers are now going to be sitting on a lot of inventory as sales plummet.
Ironically this was designed to boost American Auto makers and Ford Focus did lead the pack in sales. Directly following Ford came Toyota corolla, Honda Civic and Toyota Prius and Camry all FOREIGN models. I wonder if Japan will send us a thank you?
Taking credit for what is going to happen anyways! Lets face it...old cars are junked anyways as they quit working. The cars that qualify for this are old smoking burnt out clunkers that will be off the road anyways.
Ignoring the deficit: While everyone was slapping each other on the back and praising what a good idea this is they seem to have forgotten the key point: Our government is not funding this we are...and since they forked out the now $3 billion dollars and this money is borrowed from our future...thus adding to the enormous debt we have already racked up.
With the above mistakes, people losing their jobs and becoming homeless...I guess those new car owners can live in their cars...that is until the dealership comes to repo for it for lack of monthly payment.
Many sales under the clunkers incentive appear to be deferred purchases from buyers who otherwise would have bought a new car before the program started. They just held out to receive the extra money. I guess you and I can pay for someone else to have a new car...No wait that will end of being the burden of our children and their children.
I NEVER AGREED TO THIS! I NEVER SAID THIS!.....DID YOU?