Cash for Clunkers the New Social Welfare

The New Face of Car Bailout

The Obama administration expressed optimism that the cash for clunkers program would be renewed by the senate. In fact the response for the program has been called “wildly popular”. What they mean to say is they didn’t expect the American public to fall for the worst tax since the IRS was created.

The cash for clunkers website has a huge backlog and auto dealers are being warned that they don’t know if transaction will be approved or funded so far.

The original proposal of course was aimed at assisting GM and Chrysler. The intent was to funnel money directly to those companies while making the U.S. citizen the patsy to do it.

Please recall that the bailout was overwhelming unpopular. 76% of Americans were completely against the bailouts. In fact, over 30 million Americans contacted their representatives to express their displeasure. The government hadn’t seen such a response since someone suggested Bush should run for a 3rd term and amend the constitution. Of course they passed the bailouts anyway and Americans took it bent over without so much as a whimper.

This time the government got sneaky. Instead of giving the car industry a bailout [evil word] the couched it in terms of a new entitlement program [ socialistic program ]. This way the U.S. citizen will be the cause of his own tax raising. They pick the car and the government gives the bailout, piece by piece. What the citizen doesn’t realize, comrade, is that it is they that is left holding the bag.

A Lesson In How the Car Industry Actually Works

While everyone is thinking that average joe public is the one turning these in, they don’t realize who is the main consumer of automobiles, Fleet Sales. Yes, boys and girls, companies that buy cars by the thousands are what really drive the auto industry, not ma and pa Smith.

Fleet sales is the entire reason we don’t have electric cars zooming along today. Fleet sales is the reason our cars aren’t flying along like the jetsons. They are the reason we have not increased fuel efficiency in nearly 100 years. The car industry only listens to fleet sales.

So, while you think it’s pennies to pay taxes on your one car you bought through cash for clunkers, which still is wrong, you’ll pay the entire $4,000, keep in mind fleet sales amount to hundreds of thousands of sales. And, all the taxes that they should be paying, will be passed directly to you. Not only will you pay for your own cash for clunker stupidity, but you will have the corporate fleet sales hoisted onto you in both taxes and consumer prices raised, for the corporations to pay off the taxes.

Who’s Side is the Government On

I already discussed in a previous blog Why I’m Against Cash for Clunkers. I outlined how you qualify for cash for clunkers. One qualification I forgot to mention though:

Trade-ins cannot be more than 25 years old or get more than 18 miles per gallon.

So besides the car having to be paid off, the car cannot be fuel efficient. And, if you trade in a car that gets 18 miles per gallon fuel efficiency, you have to purchase a car / truck that gets only at most 10 miles per gallon fuel efficiency, light to heavy truck. I ask you, does that even make sense for the future?

The cash for clunkers bailout is $2 billion so far. This socialist program is trying to be made permanent. And, remember that’s $2 billion we have to pay.

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shakaama

Ex law school student. I was kicked out for revealing I had a heart actually beating inside. I used to be in a modern dance company. I'm working on my 7 miracles to be proclaimed a saint by the pope. #1 is really hard, but once i get over that hump the other 6 will be a cinch.

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