My cash for your new truck.
November 5, 2009
THIS is why you don’t want hastily written and passed bills out of Congress.
Remember Cash for Clunkers? The government borrowed two thousand million dollars from us and our children to give up to $4500 rebates to people buying new cars.
In the original plan, the money was to go to those trading in gas guzzlers for small, fuel efficient vehicles. Noble, inefficient, and soon overcome by the lobbyists. You see, with gas prices up the automakers had big stocks of trucks and SUV’s that weren’t selling. So, the program got changed to allow the rebate to go to tradeins with ANY increase in mileage.
The result was that the most common swap was trading in your old F-150 for a NEW F-150. Heck, upgrade to 4 wheel drive and a nicer interior, we’ll just pay for that with Obama money!
Truck-for-truck and truck-for-SUV deals totaled at least $911 billion out of the $2 billion total, with only 1 to 3 mpg mileage increases being the norm.
So in the end, who won? The car dealers did- they sold a lot of cars at an average $1000 per vehicle higher profit than before the program started. After all, they could raise the price since someone else was paying the cost.
Who lost? Taxpayers, for sure, who get to pay the interest on the bonds we floated to pay for this. Poor people, for whom many of these “clunkers” would have been better and safer cars than what they are now driving, except we had to ruin the engines of the trade-ins. Finally, Congress, for proving once again they WILL step in it every time they get the chance.
Do NOT allow these people to run more of your live, EVER.