I was reading an article today by Dick Morris on the Cash for Clunkers program. I'm sure everyone has seen the commercials on TV for their local car dealerships, urging you to come trade in your "clunker" for up to $4,500 in government money towards the purchase of a new car. Cash for Clunkers is one of the programs created to spend some of that $787 Billion that was supposed to be saving the world. Originally, the program had $2 Billion dollars worth of taxpayer dollars behind it, which we promptly blew through in four days. So the government dumped another $2 Billion into the program, and we're back in business. But are we?
Cash for Clunkers seems great, right? Who doesn't want "free money? Money in exchange a rusty old '82 Silverado pickup? And to boot... we get to get rid of all those gas guzzling rattle-traps and get some new, sleek, fuel-efficient, eco-friendly, "green is the new black" cars on the road. This program seemingly does it all; gives money to people for junk, stimulates the auto industry, sells cars that save the earth, etc. etc. etc. Now, I know what you're thinking. "You're such a cynic, Briana." But bear with me, here.
Eco-friendly. Where are all of these hundreds and thousands of "clunkers" going? To a trash heap somewhere. ::gasp:: We've made trash. And a lot of it, all at once. Instead of hundreds and thousands of these cars making their way off the road over years time, they're all being retired together. And what energy, electricity, power and resources are being expended to make all of these new cars? Now I'm not a big proponent of people driving ridiculous four-mile-to-the-gallon Hummers, or single people shlepping around in Suburbans (although those people have a right to own and drive whatever car they so desire) but I don't know that we're really saving the earth from gobs of unnecessary pollution by speeding up the process, and getting these old cars off the road. What are we going to do with all of this garbage?
The cake topper on all of this is the facts about the cars being traded in and purchased through this program. All ten of the top ten car models being traded in, with Cash for Clunkers, are American cars. All ten. And consequently, six out of the top ten cars being purchased (and four out of the top five!) are foreign. Now it would be a violation of the World Trade Organization rules to skew a policy to favor domestically manufactured products, and I am not suggesting that, but this is not stimulating any economy except Japan's! This is not creating jobs, it's just making a lot of money for the few dealerships who are willing to sign up and wait with their hand out, for their government checks. This is why government getting its sticky fingers all over the free market doesn't work, because there are unintentional consequences all over the place. This Cash for Clunkers program proves, in the words of Mr. Morris, "that Barack Obama is the best president Japan has ever had."
(according to the Department of Transportation)
Top 10 Trade-Ins
1. Ford Explorer
2. Ford F150 Pickup 2WD
3. Jeep Grand Cherokee 4 WD
4. Jeep Cherokee 4 WD
5. Dodge Caravan/Grand Caravan
6. Chevrolet Blazer 4 WD
7. Ford Explorer 2 WD
8. Ford F150 Pickup 4 WD
9. Chevrolet C1500 Pickup 2 WD
10. Ford Windstar FWD Van
Top 10 Purchased Cars
1. Toyota Corolla
2. Ford Focus FWD
3. Honda Civic
4. Toyota Prius
5. Toyota Camry
6. Ford Escape FWD
7. Hyndai Elantra
8. Dodge Caliber
9. Honda Fit
10. Chevrolet Cobalt
I love Dick Morris and his one liners.
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