Unless you are a new car dealer or an advertiser, the “Cash for Clunkers” program that is the brainchild of the liberal Democratic majority in Washington DC is a billion dollar plus boondoggle. Oklahoma’s Congressional delegation has been rightfully vocal in its opposition to this costly socialistic experiment . . . and here’s why:
Cash for Clunkers is driving up prices of used cars for the millions of low and medium-income Americans who buy them because the program is creating a diminishing pool of used cars.
As Senator Inhofe put it, “This means that many Americans who, even with the government incentive, cannot afford to purchase a new car will end up being charged more when trying to purchase a used car.”
Charities are also taking a hit. This program is drying up the pool of clunkers that in the past were donated to charities. Charities have had such programs for years that involved collection of the clunkers and which were either used by the charities themselves, or turned around and sold to finance their charitable operations.
This program further entangles the government in the business of the free market (in addition to a few more billion dollars of theft from the American taxpayer). Again, Senator Inhofe describes the problem, “On the surface, the ‘cash for clunkers’ program may seem like a good idea, however, closer examination highlights why government should not get into the business of running businesses. It just doesn’t work.”
Citing an analysis by a private firm, Inhofe said the $1 billion already spent has provided a boost of only about 50,000 in additional vehicle sales above the typical 200,000 sales.
“That means that taxpayers have spent $20,000 for each additional sale,” he said. “The program simply feeds the myth that the government offers something for nothing when in reality, the program acts as a regressive tax.”
And finally, Cash for Clunkers adds to an already staggering debt. We are trillions in debt from all the reckless spending and borrowing, and this just sinks us a little further. Senator Tom Coburn, in voicing his opposition to the program, reminds us where lawmakers will get the additional money to keep the program going. “We are going to steal it from our children,” he said.
Any way you slice it, this program is . . . a clunker.