Sunday, August 2, 2009

Cash for Clunkers

Link

The "Cash for Clunkers" program is out of money; shocking that a program designed to essentially give away money would actually give away money. Apparently liberals have once again failed to realize the quite simple concept that when you offer money to people they'll take as much as they can.

You may be thinking that the boost to the economy from this program will outweigh the negatives of government spending. However, a look at one of the rules of this program from the official site (page 5) indicates that this may just be a temporary boost. The law requires that,

"The dealer must agree to transfer the trade-in vehicle to a disposal facility that will crush or shred it so that it will never be returned to the road, although parts of the vehicle, other than the engine block and drive train (unless the drive train is sold in separate parts), may be sold."
This program is taking thousands of cheap cars off the market. While the dealers will get a temporary boost from increased sales, they are loosing all the sales from selling these trade-ins, as they are forced to have them destroyed. This also takes cheap car options away from the thousands of Americans who are unable to afford new cars.

When the government meddles in private industry, it creates problems. Do we really want these people running our healthcare?

No comments:

Post a Comment