Because the “Car Allowance Rebate System” (CARS) program (commonly referred to as “cash for clunkers”) needs a bailout after receiving higher than expected interest. The Obama Administration and Congress were shocked — shocked, I tell you — that when the government starts handing out $4,500 to anybody, they get a huge response!
It’s bad enough that there was $1,000,000,000 originally dedicated to this program but now the House, in its infinite wisdom, has decided that it needs another $2,000,000,000. And to make matters worse, 77 Republicans voted for this most recent monstrosity of corporate welfare (roll call vote). At least all the Republicans in Virginia’s Congressional delegation voted against it.
The only thing that would make this whole situation halfway rewarding is if all the cars are being sold by Ford and foreign automakers so Government Motors (GM), Dodge, and Chrysler don’t receive anymore welfare payments.
And this has to be one of the saddest pictures I’ve seen in awhile:
Yes, I know it’s a gimmick ad by some car dealer but it represents perfectly what the government is doing. They’re paying for the destruction of vehicles, not because they don’t work, but because a couple of businesses need another bailout and the government has the ability to throw away money by the billions. Cars that cost thousands of dollars, and which hundreds of people spent dozens of hours building, are being destroyed by government fiat.
And think about this: What happens when someone just out of college, or someone that has been saving money for a year to buy a used car, goes out and tries to buy a car and finds out to his surprise: “What the heck! Used cars are a lot more expensive than they were a year ago!”?
Why? Because the government has interfered with the free market and worked to destroy the existing supply of used cars.
I’m halfway through reading Atlas Shrugged, and it’s amazing how much this country is starting to look like the situation in that book…
Cross-posted at “I’m Surrounded By Idiots”.
Filed under: Congress, Federal Government, Guest Columnists, Spending, Supply-side Economics, Urkelnomics
