Why Cash for Clunkers is a Loser
Your tax dollars are funding another losing proposition. Th $4,500 rebate program designed to boost the economy is now costing dealers far more than it is worth. The local Toyota dealer, Smart Motors, in Madison WI reportedly has almost $500,000 owed to them in the program. One local Ford franchise has not seen a single payment. The program could literally be putting dealers out of business.
Additionally, the attached article states that the NHTSA has had to triple their staff to attempt to deal with the onslaught of applications. While government is furloughing staff in many departments (also a failing effort) this program is requiring that other agencies triple the cost of operations to give away money!
Now, recently bankrupt GM announces they are going to pay cash to the dealers to keep the dealers afloat so the government subsidized auto manufacturer can continue to build cars that cost more than they will sell for. Hmmm...government investment in a manufacturer to provide goods to a dealer to sell at government subsidized price to consumers paying higher taxes to pay for the increased subsidies.
How is this helping the economy?
Additionally, the attached article states that the NHTSA has had to triple their staff to attempt to deal with the onslaught of applications. While government is furloughing staff in many departments (also a failing effort) this program is requiring that other agencies triple the cost of operations to give away money!
Now, recently bankrupt GM announces they are going to pay cash to the dealers to keep the dealers afloat so the government subsidized auto manufacturer can continue to build cars that cost more than they will sell for. Hmmm...government investment in a manufacturer to provide goods to a dealer to sell at government subsidized price to consumers paying higher taxes to pay for the increased subsidies.
How is this helping the economy?
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