No Cash for Clunkers

Thursday, July 30, 2009
Posted in category The Planned Economy

Welcome to Federal Government Micromanagement of the Economy 101. NoThe government’s joke-of-a-program, the “Cash for Clunkers” scam, is over already. Why? The tank ran dry.

The so-called “Cash for Clunkers” program will be suspended because the funds set aside for the effort are on the verge of running out, Capitol Hill sources told CNBC.

Transportation Secretary Ray LaHood has notified key senators that the program will “run out of money at midnight tonight,” sources said.

From TwinCities.com:

Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns about large backlogs in the processing of the deals in the government system, prompting the suspension.

…A survey of 2,000 dealers by the National Automobile Dealers Association found about 25,000 deals had not yet approved by NHTSA, or nearly 13 trades per store. It raised concerns that with about 23,000 dealers taking part in the program, auto dealers may already have surpassed the 250,000 vehicle sales funded by the $1 billion program.

A government program that hands out discounts to people who conform to politically-approved government mandates (MPG stipulations) has resulted in a shortage of funds? Say it isn’t so! Thanks to Charles Everett for the link.

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6 Responses to No Cash for Clunkers

  1. Sal says:

    July 30th, 2009 at 11:56 pm

    I read a poster caption just this morning:
    Government- “If you think the problems we create are bad, just wait until you see our solutions.”

  2. clark says:

    July 31st, 2009 at 11:34 am

    Does this mean my local dealership has to take down the huge craine that has an older 1980′s pickup truck dangling in the air with the huge numbers $4500 painted on the side?

  3. Chris says:

    August 4th, 2009 at 9:43 pm

    So, what you’re saying is that a program that does exactly what it’s supposed to do and uses money in order to get people to buy more American cars has failed? By what measure? If it weren’t running out of money, you’d argue that it was failing to live up to the purpose of the project in the first place.

    The irony is that it’s the same people who are claiming it’s a failure for running out of money are the ones that argued against spending it in the first place, mostly due to a blind ideological faith that says that a system that favors corporations and drove us into an economic recession will somehow regulate itself, and it’s simply not true.

  4. Karen De Coster says:

    August 5th, 2009 at 8:45 am

    Wow, Chris, you don’t read very well. I thought that post would teach people new reading skills. The government doesn’t “use” money — it STEALS money and REDISTRIBUTES IT to FAVORED people and programs. The ‘Cash for Clunkers’ program was meant to benefit the corporations, not Ma and Pa America. Wake up, dude. “Blind ideological faith” to … ummm, corporations? Chris, when did you wake up from your slumber? Did you miss my last 11 years of trashing the corporatists state and corporatist Wall Street and the fascist corporate-state alliance? Good God, get out of your mind-numbed state and make the distinction between me, pal, and the Republicrats you seem to hate. Oh, and, corporations drove us into a recession? Uhhhhh, read the Tom Woods book, “Meltdown,” and get back to me when you are educated. An uninformed American is a dangerous thing.

  5. Ethan says:

    August 6th, 2009 at 11:21 pm

    As with most government programs, the success of the “cash for clunkers” program is not measured in how well the consequences of the program align with the stated goals of its advocates. Nor is it measured by any economic impacts the consequences might cause. Instead, just like the example of the public library in George Dance’s recent article about Booze and books, the success is measured by participation or usage, not by any measure of the value provides or harm it does to our economy. The trick is to define the program specifically so that it has a known demand so the usage is high. Media spin and politics will make sure the right people hear the program was successful and beneficial. I heard a bit on NPR just today about the downstream benefits that recycling all these old cars has. Ridiculous of course, but the perception amongst the voters is far more important than the actual results and consequences. Certainly there will be follow-on programs, cash for major appliances, cash for tools, etc.

  6. Christopher says:

    August 7th, 2009 at 1:08 am

    As with most government programs, the success of the “cash for clunkers” program is not measured in how well the consequences of the program align with the stated goals of its advocates. Nor is it measured by any economic impacts the consequences might cause. Instead, just like the example of the public library in George Dance’s recent article about Booze and books, the success is measured by participation or usage, not by any measure of the value provides or harm it does to our economy. The trick is to define the program specifically so that it has a known demand so the usage is high. Media spin and politics will make sure the right people hear the program was successful and beneficial. I heard a bit on NPR just today about the downstream benefits that recycling all these old cars has. Ridiculous of course, but the perception amongst the voters is far more important than the actual results and consequences. Certainly there will be follow-on programs, cash for major appliances, cash for tools, etc.

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