Cash for Clunkers more pain than gain: will hurt charities the poor and small businesses
By Kevin “Coach” Collins
The Cash for Clunkers (CfC) program is a case in point for emotion over logic.
Besides rewarding underperforming new car dealerships, many of whom would not be able to survive on a truly level playing field there are a number of reasons why this program will be a short term boom and a long term bust for our economy.
Charities hurt badly
The biggest loser will be the hundreds of thousands of American charities whose budgets are built on a constant flow of donated old but serviceable cars. When these donations stop the great work these selfless people do will stop as well. This will further disadvantage millions of already challenged Americans who will lose their meager levels of independence and some of their dignity as their safety nets melt away.
*CfC will hurt poor people when the scarcity of remaining old cars drives their price up and out of their reach. How do they travel to any new job they can finally find?
*It damages the used car industry, men and women who are genuine American entrepreneurs who re-build their businesses from scratch every day.
*CfC will hurt auto repair businesses used car part producers and suppliers.
*It will eventually kill the auto salvage industry a segment of the American economy that helps poor people keep their cars on the road.
* It increases the power of government over our lives by strengthening redistribution and regulating consumer spending behavior. This program adds to our debt using taxpayer money to prop up the favored Auto Workers Union.
During its brief life the program has served as a screaming reminder of the ineptitude of government administered programs best left in private hands. In just ten days it ran out of the money it was allotted to operate for ninety days.
A program of destroying functional automobiles (to be eligible a “clunker” must be running) is antithetical to the idea of “making do” in tough times. Going into further debt for a new car makes no sense except to liberals who see their jobs as taking our money to buy them votes.
We can’t stop this one. It’s already rolling. But we can keep a close eye on these liberals and let them know we don’t want to give them another penny.
Citizenship is not a spectator event. Get engaged, stay engaged. It’s your life and America’s future that is at stake.
Comments on this or any other Collins Report essay can be sent to kcoachc “at” gmail.com