Thursday, August 27, 2009

Cash For Clunkers is a Clunker.

Well, I called it weeks ago. The "Cash For Clunkers" program spurred sales of new vehicles, just not the vehicles our dictator and his union handlers expected. But, how could any semi-intelligent person not see what would happen. I'll run it down for you. I know, I know, you're one of the semi-intelligent ones as I am but there might be some of the "Blinded-by-the-obama-glow" folks reading this that always need the obvious explained.

Fallacy #1. The government can run a program involving money or services and not have it work as planned.
Truth #1. US Post Office, Social Security, Medicare, VA Hospitals, Amtrack, just to name a few. What do these all have in common? All are run by the government and all operate in the red by billions of dollars. None of them make a profit and is subsidised by you the tax payer.

Fallacy #2. People will trade-in their clunkers, buy a new American car and the government/union owed (tax payer owned, union controlled) auto manufactures will be saved.
Truth #2. Let me ask, why were the American auto makers were going to go out of business without a bail-out? Because they build "SHITY" cars that cost too much. Now comes along a $4500 "gift" to buy a new car. What are people going to buy? Right, a car not made by lazy, over paid, corrupt unions. Below is a list of vehicles purchased in the program, notice any thing.
Here's the link to this information:

www.cashforclunkersfacts.com

Top 10 New Vehicles Purchased
Toyota Corolla
Honda Civic
Toyota Camry
Ford Focus FWD
Hyundai Elantra
Nissan Versa
Toyota Prius
Honda Accord
Honda Fit
Ford Escape FWD

And here is a list of the vehicals (clunkers) traded in:

Top 10 Trade-in Vehicles
Ford Explorer 4WD
Ford F150 Pickup 2WD
Jeep Grand Cherokee 4WD
Ford Explorer 2WD
Dodge Caravan/Grand Caravan 2WD
Jeep Cherokee 4WD
Chevrolet Blazer 4WD
Chevrolet C1500 Pickup 2WD
Ford F150 Pickup 4WD
Ford Windstar FWD Van

Do you see what I knew would happen? People traded-in their American union made "clunkers" and are buying higher quality, better value Japaneses built vehicles. The funny thing is most, if not all of those foreign manufacturer autos, are made in the United States. And, just like the Fords that are in the "purchased" list, none of them received government (tax-payer) bail-outs.

Fallacy #3. This government run program will run smoothly and the auto dealers will have no problem receiving the "Clunker Cash."
Truth #3. Just like the Post Office. LOL. The web site used to submit the forms crashed. The 13 page forms were often rejected for no reason. There are dealerships that submitted over a hundred requests and only received a few payments.

Scott Lambert, vice president of the Minnesota Auto Dealers Association, said he was "astounded" to learn at a meeting Tuesday representing about 150 Minnesota dealers that not one has had a deal approved.

"We had dealers representing 1,500 to 2,000 transactions," he said. "We asked how many had a deal approved yet, and not one hand went up."


Fallacy #4. This government will freely "give" you $4500 for your clunker.
Truth #4.Yeah right! Guess what little surprise you'll be getting when you file your tax return next April. Yep, you get to pay taxes on that "free" $4500 as earned income.
So you see, this is just another "big-government" "big-screw-up" because the morons in Washington insist on meddling in the economy. The best line I've heard is, "If the government is powerful enough to get us out of a recession, why isn't it powerful enough to help us avoid a recession."

Ronald Reagan puts it best,

"Government isn't the answer to the problem, government is the problem."

"Government does not solve problems; it subsidizes them."

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