Let’s see how this works: The federal government switches on the printing press to crank out $1 billion which is then given to individuals to buy cars preferred by the government from companies owned by the government, obligating those too young to drive, as well as the unborn, to pay off the printing press dollars.
it’s a very popular program and, of course, politicians in power wish to continue it, doubling it to $2 billion by shifting printing-press dollars from a “renewable energy” loan program. While a number of Republicans oppose the Cash for Clunkers giveaway, Democrats can pass it at will. If they come up a little shy on the vote count, Maine’s two Republicans, Susan Collins and Olympia Snowe, are always ready to cross the aisle.
The encouraging news in the clunkers deal, as far as I’m concerned, is that the leading replacement vehicle, according to Transportation Secretary Ray LaHood is the Ford Focus, a vehicle produced by a private-sector automobile company. Ford reports that its July sales were up 2.4 percent over the same month in 2008, the first year-over-year sales increase in 19 months.
Even though it is a $3,500-to-$4,500 per car taxpayer subsidy and it does amount to corporate welfare and it does come at the expense of the quality of life of chilldren unborn, the kernel of good news is that all of the money is not going into the coffers of government car companies. Ford’s free-enterprise engineers and designers have brought forth a car that people want, just as they all used to do — well, maybe not American Motors — before government took over the industry.
It is printing-press money and the deficit this year will be at least $1.8 trillion and it is stealing from the future for current consumption, but all that said, it’s better to spend the billions on clunker deals than to throw it away on pork projects as much of the $787 billion “stimulus” does.