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Wednesday, August 5, 2009

Three More Downsides to the Clunkers Clunker

The Clunkers deal is being criticized roundly by those with policy experience. Here's another couple of bad things the Cash for Clunkers deal will introduce:

1. The Clunkers program is requiring that all cars traded in for federal cash be destroyed. This is taking out of the market cars that usually pass to the poor, because they can be sold cheaply. But taking all of these off the road will cause a dearth of vehicles that the poor can afford.

Mark my words, in a year or two, the Democrats will introduce a bill whereby in some form or another, the government will buy a newer car for the poor. They've almost done it for illegals, through giving driver's licenses to those in the country illegally.

2. The new cars being sold through the program are not American cars. What's up with that? Tis gets away from the basic tenet of the program, which was to revitalize the automotive industry and get the government out of it, words used by Obama himself. So what the hell?

3. Giving away cars to support charity will go away. Carities often accept donations of these very clunkers that they can then sell for scrap themselves. They use it as a means to support the charity. But with the ability to trade in your clunker and the government scrapping the cars themselves, they've taken away a very powerful tool for charities to raise much needed cash. I've donated a car myself to this, and still feel good about it.

On the upside: There have been many problems with the program, and still are, not the least of which has been the administrative costs and oppressive paperwork. So if you want to see what US Federal health care will look like, look no further.

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