Cash for Clunkers Was a Total Failure

[Tim H]

Interesting to see that the source referenced earlier that was not CNN also now has articles about how Cash for Cluckers was only a scheme that got people to buy cars earlier than they would have and even the White House acknowledges that fact. The White House then justifies it by saying we need them to buy the cars now because the economy needs the help. So they acknowledge the "success" is based on selling cars that would have been sold anyway.

In my opinion, this is just more borrowing from the future of this country. What is the longterm effect? Isn't this the same type of policy that created the housing problem. Give people the impression that they can afford something they cannot.

You site in your anecdotal evidence that people working in parts manufacturing plants are not being laid off because of this program. If you understood even the most basic economics you would know this claim is complete BS. Taking an older car off the streets and crushing it (which is what is required by this program) and buying a new car will not cause an immediate need for parts, it will reduce the need for immediate parts. The new car which was already built will not need any parts for quite some time. However, the older car was most likely in need of some parts at the time and that is why it was traded for a new car.

One other "FACT" that needs to be brought forth. Chief, your math is off by quite a bit. Hopefully real math will help clarify the biggest problem with cash for cluckers. If you were the only one to get a vehicle through cash for cluckers then your assessment of the cost would be somewhat accurate. However, you would need to multiply the COST to each taxpayer by the number of cars sold under this government redistribution program. So as most real economist understand, the more "successful" this program is, the more it costs the economy and the more the economy will be slowed down.

You also might want to do some research on what happens to money once it goes into the governments hands. I think you would find that the cost is far higher than you are claiming. Here's just a microcosm of what I'm talking about.

That money that you got from the government required government workers (who get paid through tax money) to process it when it came in as taxes. Then more government workers(who get paid through tax money) had to process it to the department that then had more government workers (who get paid through tax money) process it to the program that had even more government workers (who get paid through tax money) process it through the program which distributed this money to the dealership. Now it is clear that this money has cost way more than it would have if it had been left in the hands of the people who earned it so they could go buy their own vehicle with their own earned money. Instead it was confiscated from them and given to someone else at a greater cost. However, you may not realize this but there is more inefficiency to be had. You now will be TAXED on that money and it will have to be processed once again by the same government workers(who get paid through tax money) .

Even if I take your figures at face value (as inaccurate as they are) I still would like you to explain why you feel entitle to take ANY amount of money from your fellow Americans who earned it and go buy yourself a truck?

[mtnwaykennel]

If you want to know if CARS was a failure... go down and ask your local dealer. It turned cars into money for everyone involved... except the dealer and salespeople. If you want to know who it helped... it helped in large amounts of sales tax and bottom line for parent companies. Did it help the hometown dealer????? If it did .... damned if I missed it. I seldom post on anything political because it pisses me off so bad, but I tell you this was the biggest bunch of crap I have ever seen. Our Ford rep stated that for every 4500.00 shelled out to a customer that it cost the goverment 12,673.00. Between the advertisments, the people at the "cars" center answering phones and processing orders, the tech support and also the NHTSA officers they hired to police it. That is where the billions went, not to the people who wanted to trade the clunker.

I just realy wish the goverment would stay out of buisness. They have proven they have no understanding of controlling money less yet making any. Let people do the jobs.. and they will do it right.
Bill Woods

[2500 HD]

Way to go Bill.......Well said!!!!!!!!!!

[Pine Mt Beagles]

IF YOU WANT TELL YOUR LIES GO SOMEWHERE- PEOPLE CAN'T READ..........YOU DON'T KNOW WHAT YOU ARE TALKING ABOUT ,NOTHING TO DEBATE HERE ,JUST SOME ONE ON THE WRONG PAGE,,,,,,,,,,,,

[Rabbithoundjb]

You should take your own advice PMB.

[mtnwaykennel]

PMB .... I think I may know a little about this one. You consider I only get paid off money made and total bottom line of a dealership.... then I may know something about it. It seems to me that when you are out of bullets for your gun "facts for your mouth" you sling poop like a monkey in the zoo...........

I am just glad it is over and I hope that everything can get back to normal.

Bill Woods

[Pine Mt Beagles]

I am just glad it is over and I hope that everything can get back to normal.

Bill Woods
---------------------------WHAT NORMAL,,,,,,,,,,,,MY SON TRADED HIS TRUCK IN DURING THE CASH FOR CLUNKERS AND THE SALESMAN WAS,,,,,,,,,,,, HAPPY !!!!!!!!!!!!!!

[2500 HD]

I am just glad it is over and I hope that everything can get back to normal.

Bill Woods
---------------------------WHAT NORMAL,,,,,,,,,,,,MY SON TRADED HIS TRUCK IN DURING THE CASH FOR CLUNKERS AND THE SALESMAN WAS,,,,,,,,,,,, HAPPY !!!!!!!!!!!!!!

You sure ain't fricken normal!!!!!!!!!!

[Pine Mt Beagles]

by 2500 HD on Sat Nov 07, 2009 3:07 pm

Pine Mt Beagles wrote:
I am just glad it is over and I hope that everything can get back to normal.

Bill Woods
---------------------------WHAT NORMAL,,,,,,,,,,,,MY SON TRADED HIS TRUCK IN DURING THE CASH FOR CLUNKERS AND THE SALESMAN WAS,,,,,,,,,,,, HAPPY !!!!!!!!!!!!!!

You sure ain't fricken normal!!!!!!!!!!
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IF YOU CALL------- CALLING THE PRESIDENT OF THE UNITED STATES, ALL THE NAMES YOU GUY'S AND YOUR ELECTED OFFICALS CALL HIM ,,,,OR COMPARE THE HEALTH CARE PLAN TO THE NAZI DEATH CAMPS OR SAY THAT, THIS HEALTH CARE PLAN WOULD BE A WORSE TRAGEDY FOR AMERICA THAN 911,OR SUPPORTING THE REPUBLICAN CONGRESSMEN,,WHILE PARTSIPATING IN RIOTS WHILE IN OFFICE,THEN NO I MOST DEFINATELY AM NOT NORMAL,,I'AM SURE YOU NOW IT BUT THESE HATERS ARE DISTROYING AND DIVIDING THE REPUBLICAN PARTY EVEN MORE,,,,,,,,,,,,,

[mtnwaykennel]

Well the interesting thing is .... The german Nazi party was the first in modern history that instituted a goverment controlled health care system. When you have a systemmatic take over and extreme spending in a goverment body that is has spent very little time in office, at some point that fast track system will crash. Then what will we be left with? If any president in the past would have started his rein like this it would have been hell to pay, but not this day and age. We all are so concerned with being correct that no one will say what needs to be said. Point to date this has all been one big joke. You think other countries are not looking at this and smiling. Think about it. The french love this admin. But on the same note the french hate americans, even thou we have pulled thier asses out of two wars.
All these countries we owe money to are licking thier lips right now just waiting for this to continue and run its course. At least in the past the presidents who screwed up have had the balls to tell people it is coming. Clinton's admin changed so much of the american way of life, and then W did nothing to set it back and here we go once again to the exteme swings.

If you don't think we are in trouble my friends .... stop and look around. It takes my breath away. That is why I work, go home and then to the mountains. It is one of the last places we can be americans without having to be politicly correct.

I have no idea what is next, or what path we as americans need to take but I can tell you this, I have to respect a mans position but be damned if I have to respect the man. Boys we gonna need some help before long, and I hope that the ties that GREAT presidents in the past created will hold true, cause we gonna get led by the nose into the path of an oncoming asian train.


Bill Woods

[Pine Mt Beagles]

BILL
A VERY GOOD POST----------