It looks like the "Cash for Clunkers" bill has been a huge success. A bill that was intended to stay in effect for many months, burned through a $1 billion budget within weeks. It looks like they hit the jackpot - at least until their money ran out.
So with a program this is fantastically successful for whatever it is trying to achieve, the logical choice would be to add more money to the bucket and "ride 'er till she bucks ya". But where do we get this money you ask? It comes from the stimulus money set aside to fund renewable energy construction projects. Another $2 billion dollars of funding for the cash for clunkers program has passed the House of Representatives and is expected to pass the Senate on Friday. Aren't they just robbing Peter to pay Paul. Actually, it's more like taking the money out of the left pocket and putting it in the right, but they could just be throwing it in the street.
"If Congress decides to extend this initiative, I believe we must not rob from the loan guarantees we provided through the recovery package that, in the long term, will shift our country to home-grown, renewable energy while creating good 'green collar' jobs," Senate Energy Committee chairman Jeff Bingaman said, according to a Reuters report.
I'm actually not that upset even though, I'm sitting here as a construction professional (no smirking) without a job, because I think it's a pretty creative idea that will in the least get people to drive more fuel efficient cars, and could rejuvenate a stagnant auto industry. As a card-carrying armchair economist, I'm not opposed to the whole thing, but even my slightly idle mind can point to some small holes in the oil pan.
So what if I trade in my "clunker" (that must get less than 18 miles per gallon) and get my $3500 rebate for a newish car (if the car gets less than 10 mpg you get $4500) and the dealer turns around and instead of demolishing it as they are supposed to, they sell it for $2,500? Then we've got two cars on the road instead of one and both the dealer and buyer lined their pockets with money that could have otherwise gone to building renewable energy facilities. Did they figure out a way to stop that one? I hope so.
But again, I'm not complaining because I think its a good attempt at being economically and environmentally sensible at the same time. It may take a couple more generations, but we should be good at it eventually - being sensible that is.
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They pour liquid glass into the engines to permanently disable them. So, you know, they got that going for them.
ReplyDeleteYeah, and I never rip the tag off my pillows.
ReplyDeleteNo, they probably do demo the cars, but even so it takes more energy to build the new car than it is saving from better efficiency...or something like that. I'm afraid that I'm going to have to believe that this bill is an economic bill masquerading as an environmental bill. That's fine, but I would just love it if somebody for once in this World would call a spade a spade.
They should, at the very least, send the cars to a parts graveyard to recycle usable parts before disabling and crushing them. Is China getting the steel?
ReplyDeleteJohn..... www.iaai.com and look at the cash for clunkers link on the main page. They are making them junk/salvage titles with a national database to keep track of it.
ReplyDeleteHOWEVER, as you mentioned..... they can get back on the road as I see it, because in many states an individual can purchase one of these cars and get it re-titled to be plated again and driveable. Hmmmm....wonder how long it will take some enterprising soul to figure out they need to buy up these "clunkers" and resell them.