Monday, August 24, 2009
The Clunker Is Dead But Do You Believe In Reincarnation?
Yes, today, the Cash For Clunkers welfare benefit will end. In barely a month of operation, the government spent $3 billion of your money helping people buy cars-people who would have bought one earlier had they not decided to wait for their welfare check, people who would have bought one later had they not gotten their welfare check now, and a few who just saw a great opportunity to get a welfare check.
Of course, for those of you who missed out on this 'manna from heaven', you'll have to wait for another day.
Sadly, the powers that believe, those in Washington, will cite this as a great government effort to revive the economy and a particular aspect of it, the auto industry (despite the fact that a great many of the purchases were of foreign made vehicles). They will ignore the paperwork fiasco that dealers have gone through, particularly since they want you to think they can do just as good of job running the health care industry, 17% of your economy.
But don't be too discouraged if you missed out. After the 'great success' of this program you can bet there will be more. Maybe it will be new washing machines, maybe it will be new recreational vehicles (only if they are more energy efficient), maybe it will be new motorcycles or Segways.
And, of course, the next time there is a recession (assuming this one ends), you can bet 'cash for clunkers' will be reincarnated!
P.S. In the interest of fair disclosure, we must shamefully admit that at least one of our contributors collected his/her welfare check by trading in a clunker. Punitive measures are under consideration.