While not the moment’s greatest threat to liberty — that would be carbon energy rationing or socialized medicine — the Cash for Clunkers program should cause reasonable people to pause at this stunning act of wealth destruction.
The cute name for this program has perhaps disarmed too many people. Let’s consider what the government is doing with an example. Politicians want more energy efficient houses. The government offers $50,000 to folks toward the purchase of a new house with a better energy rating than their current “old” house. You have to own the house, be a current occupier, and let’s say your mortgage is paid in full. If you qualify then you turn over your older house, buy the new one with your coupon, and the builder comes over and burns your old house to the ground.
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Second, the government, in the interest of marginally increasing American vehicle mpg, is literally taking these cars off the roads. That is because when you turn in your “clunker” — a real misnomer since the program aims at retiring perfectly good vehicles — it is taken and crushed into a cube of steel. Good engine? Permanently disabled. Good transmission? Yes, pretty much the whole vehicle, perfectly drivable, is junked at the wrecking yard. Now, it makes sense to recycle the steel and useable parts of real clunkers that are no longer worthy of the road. It makes no sense to ruin perfectly good cars and trucks. And that is what the Congress has done: They are robbing Peter to pay Paul to get a new car, then spending money to turn Peter’s good “old” car into a chunk of scrap metal.
But you say, “Look at the new cars our auto companies are producing to serve this new demand.”
I’m afraid the auto industry will only recover when more people are earning money so they can afford new cars. This gimmick can only provide temporary relief, not long-term growth. No industry really benefits from wealth confiscation or wealth destruction. What the American auto industry needs is de-nationalization, repeal of CAFÉ standards, and an end to the federal bailout-spending frenzy so working Americans can afford once again to buy great American products.
If the government were paying people to give up their perfectly good homes so that they could be burned to the ground, well, that would be insane. Yet, under Cash for Clunkers, the stock of useable automobiles in this country is being destroyed at our expense. Destroying produced wealth and redistributing earned wealth: that is destruction squared.
During the Depression FDR had millions to piglets slaughtered to allegedly help pig farmers. Then there was a shortage of pork (it was imported from Canada for a time) and Americans’ real wages were reduced. The sooner we vote out the spendthrift representatives who voted for this waste, the sooner we will have an economic recovery.
Ashley King
Wasilla


Comments
57 comment(s)jp wrote on Aug 25, 2009 3:15 PM:
Smart TRUCK owner wrote on Aug 25, 2009 9:58 AM:
Clearly the program name covers that but if materialistic fools are using good vehicles in this case, it will be like the crash of the mortgage industry and many of these new cars will go back to the bank, and be sold again for profit.
Only those that abused the program will suffer. "
Power Wagon wrote on Aug 20, 2009 4:58 PM:
sharpie wrote on Aug 19, 2009 3:35 PM:
The argument I see stated in here is that our government is supposed to base our currency production based on GNP, but they don't. Instead they print it in excess (which is against the agreement we made when we came off the gold standard).
In any case, it doesn't look like you understood the point other bloggers were making because you actually agree with that. "
someone wrote on Aug 19, 2009 2:18 PM:
The program is only taking vehicles that had a rating of less than 19 mpg at the time of manufacturing.
So....even though my 1997 vehicle is getting less than that now, it does not qualify for the program because it had "good" gas milage when it was made. "
Great Program. wrote on Aug 19, 2009 10:51 AM:
Now that's rich. You assume far to much.
The reality is they don't so therefore that statement is pointless. DOA.
Consumer confidence does have a great deal to do with the money flow and worth. We are not that once great nation that created we have becoming more of a consumer nation. "
Power Wagon wrote on Aug 19, 2009 9:06 AM:
Wrong. Our government is SUPPOSED to print currency based on our GNP. Of course now, thanks to the wack jobs in power, we just print it willy-nilly and watch it devalue at a geometric rate.
Our money is valued according to "the faith of the people that use it"?! What? Where do you get this stuff? Please tell me that you don't really think that's how our economy is based! Good lord. "
jp wrote on Aug 19, 2009 7:55 AM:
Great Program. wrote on Aug 18, 2009 11:47 PM:
to tax-funded services wrote on Aug 18, 2009 12:02 PM:
And regarding your pathetic attempt at an insult regarding "no collateral (that's how you spell it, friend) needed"...better try again. It's SUPPOSED to based off a complex formula involving the GNP. Civics class indeed. Try economics class. "
tax-funded services wrote on Aug 18, 2009 10:39 AM:
Any tax-funded services as YOU call them, forced on the people is not a service. It's a dis service. Dare I say Socialism. "
to Great Program wrote on Aug 17, 2009 1:09 PM:
"Call them what I want"? Uh....OK. Sure. I guess that's what I'll continue to call them since that's what they are. While I'm at it, I think I'll continue to refer to the Sun as "the Sun" and the sky as "the Sky" too. What do you call them? (sheesh)
"Let the banks fail"? Oh, so if we don't have trillions of dollars of deficit spending and nationalization of industry, is that what happens? The "banks fail"? (Didn't do so well in history, civics, economics or government class, did you? You'd make a good liberal politician!) "
Great Program. wrote on Aug 17, 2009 11:17 AM:
say what wrote on Aug 17, 2009 9:22 AM:
Gotta hand it to you; you're stubborn. You obviously are comfortable in your ignorance and aren't capable or willing to educate yourself.
"Free hand-out"?! HA HA! So Alaska returning the taxes from it's prime industry to the residents is a 'hand out' in your book? Unless the state is keeping all taxed money and deciding FOR you how to spend it, it's a 'hand-out'?
"Fore every dollar we get it's costing you in the lower 48?" How do you figure that? Are the taxes on the Washington State apple industry "costing me a dollar" too? Sheesh! "
jp wrote on Aug 17, 2009 7:35 AM:
all of which were part of the deal in which that money was paid back by the oil companies with interest, and the Federal government was guaranteed a percentage as well.
Try again Joe. "
Joe from the lower 48 wrote on Aug 17, 2009 4:36 AM:
From 1968 through 1977 millions of my tax dollars were spent of legislation,court challenges, government funded studies and legislators salaries just so those like you could get a free hand out from your state government. Now those like you have grown accustomed to the life of free hand outs, and when challenged not only become defensive but offensive as well.For every dollar you get free, it`s costing someone in the lower 48 a higher cost for fuel. "
to Great Program wrote on Aug 16, 2009 7:25 PM:
Government take-over of private industrialization, banks and lending institutions, insurance etc....is called "socialism". When you lemmings hand over as much money as the government can squeeze in return for doing all your thinking and 'taking care of you'. (But then, liberals like it that way, don't they?) "
Great Program wrote on Aug 16, 2009 11:09 AM:
Mo2usps wrote on Aug 16, 2009 7:53 AM:
Uncle Jed wrote on Aug 15, 2009 3:22 AM:
To Joe wrote on Aug 13, 2009 9:47 PM:
say what wrote on Aug 13, 2009 6:38 PM:
How, exactly, does Alaska giving back a portion of the taxes it collects back to it's residents any different than your state keeping all of it? How does that affect you in the slightest? Are you somehow under this goofy impression that this amount is deducted from what the Feds get?
And how is it your little mind interprets this model as 'socialism', but the government taking ALL of it is not? Not much of an education, eh Joe? "
jp wrote on Aug 13, 2009 5:31 PM:
the alyeska pipeline was a "Private" project, from ARCO, BP, and Humble oil companies. "
Joe from the lower 48 wrote on Aug 13, 2009 1:32 PM:
++
Well now, isn`t that generous of all you Alsakan`s getting a nice check back for every man, woman, and child in your state, off my back!!.
Thanks for forcing the lower 48 states to pay more for what belongs to all of us, while you take advantage of the very socialist policies you think nothing of condemning.
By the way my federal taxes also helped pay for the pipe line!! "
Joe from the lower 48 wrote on Aug 13, 2009 1:21 PM:
==
ROTFLMAO-- Same-O Same-O, All the GOP knows is tax cuts, tax cuts, and tax cuts, for the rich.
Reagan's trickle down economics, Tax cuts for the rich, has been proven to be a disaster and didn`t work. Not one major economists in the nation said the stimulus plan was a bad idea or that recovery could have happened with out it. It`s working, the economy is reviving and that`s the GOP`s worst nightmare, something Obama demanded,working. "
to Bob wrote on Aug 13, 2009 12:25 PM:
Bob fro Nevada wrote on Aug 13, 2009 11:46 AM:
good idea wrote on Aug 13, 2009 8:53 AM:
Joe from the lower 48 wrote on Aug 13, 2009 7:14 AM:
===
The GOP hypocrisy problem is simple, they don`t receive any huge re-election donations from "cash for clunkers", but just let them hand over a few billion here or there to KBR, Halliburton or to the mercenary killers at Blackwater and the support is never ending. What possible good can come to the GOP, with something good for America? "CFC" or, heath care for everyone gets them nothing in return, unless they just say "NO"? Grassley= $ 2 million in H.Care donations?? "
Joe from the lower 48 wrote on Aug 13, 2009 6:57 AM:
======
Come on--Trying to blame Obama for 14 years of previous GOP screwups before he became a senator is a cop out. All we heard from the GOP since 1994 is it`s all Clintons fault. Not once have I seen these GOP poltroons take responcibility for what they created, WMD`s, the ownership society. Bush demanded dereguation of business. How many coal miners are dead because of underfunding OSHA? "
Give me a break wrote on Aug 12, 2009 5:38 PM:
Oh, I know, it is because it was promoted by Obama....All Obama equates all bad. Conservatives are shooting themselves in the foot. "
to dand wrote on Aug 12, 2009 9:32 AM:
I see you've taken the bait regarding over-spending and nationalization somehow 'helping'. I guess it's true; in hard times people will desperately believe bunk. "
dand wrote on Aug 11, 2009 7:33 PM:
The "Clunkers' program MIGHT cause a jumpstart in SOMETHING that would take the unemployment rate of 19.5%, where some of my friends live, down a little.
Want to swap homes ? "
to Joe wrote on Aug 10, 2009 8:57 AM:
b-"tax cuts for the rich"? What propoganda piece gave you that campaign rhetoric? I suppose strapping the next two generations with the bill is the answer? Or nationalization of industry?
c- Your racist claim? Pure drivel. We don't like socialism or over-spending, but no,no..it's because we're 'racist' that we don't care for Obama! (sheesh!)
(BTW...he's only 25% black. He's 25% Arab and 50% white. So I guess we're 'racist' against Arabs and Whites, too, right?) "
jp wrote on Aug 10, 2009 8:47 AM:
Where did that come from Joe? Was it Warranted?
As the government told us minorities " we can't be racist, we're minorities!"
So, i guess that gives me the right to call anybody anything, right?
I do have to say one thing about tea parties, There is noooooo waaaaay I'd ever TeaBag Nancy Pelosi!!!!! ick! "
Give it a rest wrote on Aug 10, 2009 8:26 AM:
Unsubstantiated garbage like that played out 'racism' allegation don't rise above just being disgusting. Come back when you can be an adult and debate with some real facts. "
Joe from the lower 48 wrote on Aug 10, 2009 5:59 AM:
Liberal parrot wrote on Aug 10, 2009 12:14 AM:
Oh, but let me guess....that's all "Bush's fault" right?
Gimme a break... "
addition wrote on Aug 9, 2009 10:26 PM:
to letter writer wrote on Aug 9, 2009 5:11 PM:
1) "Illegal war"?! Wrong. Time to actually do some of your own thinking instead of parroting what the protesting morons chant.
2) Obama and this Congress have out-spent ANY previous administration in history, and in less than 1 year in power.
3) Spent to 'benefit Americans'? Oh, is that what a record deficit does? 'Benefit Americans'? Care to explain how that works? While you're at it...please tell me how spending billions to fund foreign abortions 'benefits Americans', clown! "
Liberals wrote on Aug 9, 2009 12:52 PM:
Letter writer is misguided wrote on Aug 8, 2009 5:48 PM:
Where were you complainers when those triillions were squandered on a war based on lies? The WMD lie covered up greed on the part of the last administration, and big corporations, for Iraq's oil. The lack of fiscal responsibility led to our financial crisis.
Now you complain when money is spent to benefit Americans! "
To Disgusted etc. wrote on Aug 8, 2009 5:34 PM:
The Lifeline telephone program is for people who don't HAVE the money to pay for their own phones! Yes, there are actually people who cannot pay! In your alternate universe those people have money laying around. But, that isn't how it is.
Many people must have a phone to stay in touch with emergency vehicles, in case of need, and medical ambulances, etc. The program allows them to do so, and its cost to taxpayers is negligible. "
To Amanda King wrote on Aug 8, 2009 5:28 PM:
To qualify as a "clunker" a car must get less than 19 miiles per gallon, and meet other criteria. The program is a smart way to get the car manufacturers, and the public, on board with lower gas mileage, hybrids, and electric cars.
Many people complain, about the wrong things, at the wrong times. You seem to be one of them. "
to Joe wrote on Aug 8, 2009 3:57 PM:
I guess there truly are those too stubborn to admit when they've been had, or were wrong! "
3pug007 wrote on Aug 8, 2009 12:04 PM:
Joe from the lower 48 wrote on Aug 8, 2009 7:46 AM:
to Yeah wrote on Aug 7, 2009 11:52 AM:
fishhook wrote on Aug 7, 2009 11:49 AM:
OH WHO CARES move one with YOUR life wrote on Aug 7, 2009 11:42 AM:
All while the same family who earns over $100,000 a year pays $12k in taxes and they might get 3k of it back if they have enough right-offs. "
Disgusted w cash for clunkers wrote on Aug 7, 2009 11:07 AM:
jp to Yeah wrote on Aug 7, 2009 10:53 AM:
Do you really think the rest of us will go out and buy a car without a free handout?
I really think it is an injustice to steal my tax money, and give it to just anyone who wants a new car!
I call that Theft!
The Obama/Pelosi plan is very simple, dig a big hole, and throw everyone in it. Their plan is working, and most of you are just too stupid to see it. "
Thank you.. wrote on Aug 7, 2009 10:20 AM:
Yeah wrote on Aug 7, 2009 10:05 AM:
watcher wrote on Aug 6, 2009 9:48 PM:
sharpie wrote on Aug 6, 2009 8:32 PM:
jp wrote on Aug 6, 2009 7:55 PM:
One thing i can add to it is; look what it will do to the aftermarket parts/repair industry. This industry has already taken a big hit, and is down double digit percentages.
This program will do away with smaller shops/ parts suppliers by the dozens.
this will no doubt take longer to see the results of it's destruction, but rest assured it is already happening.
if you don't believe me, ask your local shop, or parts store. "