'Cash for clunkers' breaking down, but not before hurting lower-income buyers, auto recyclers

Press reports late Thursday said the government's Cash Allowance Rebate System could already be out of money, hitting a major speed bump and possibly causing dealers some drama.

CARS works this way: Owners of a 1984 or newer vehicle getting 18 mpg or less in combined highway/city ratings can trade in their so-called "clunkers" for more fuel-efficient new cars (in some cases only a few extra miles are required). For their trouble, owners get $3,500 to $4,500 of taxpayer money and their old vehicles' engines are destroyed so they won't end up back on the road.

That last part, the destruction of engines, is causing heartburn for more than a dozen already hurting auto-parts suppliers who have had to file for bankruptcy this year. As Michael Wilson, executive vice president of the Automotive Recyclers Association, told a reporter, "Why throw away good parts when the supply chain is in jeopardy? It doesn't make a whole lot of sense." Catherine Tsai, in a story she wrote for Associated Press, reports that engines and drive trains account for 60 percent of recyclers' revenue from a used vehicle.

Tsai quotes various auto recyclers who prove the point that the government program benefits those who have enough money to pour into a brand new vehicle while hurting people who need help the most. Norm Wright, the CEO of Stadium Auto and Truck Parts Inc. in Denver, said of the program to destroy perfectly good vehicles, "Now you're removing cars people could afford, and they're not available anymore." He added, "There will be less cars to pull from, so the price of parts will go up."

It's unbelievable that the government has set aside $1 billion of taxpayer money to remove roughly 250,000 drivable vehicles from the road.

What is the worth of the cars being traded in?

Something less than $4500 -- otherwise people wouldn't be trading them in.

No, the government is merely offering people the money. It's still up to the individual whether they choose to participate.

Yes, the government is offering your and my tax dollars to other individuals. This is true of all government wealth redistribution programs, which most conservatives oppose when they're thinking clearly.

At least with this program, Americans are getting US tax dollars.

The same could be said of a national healthcare program. Do you oppose that? It looks to me like you're okay with socialism as long as it has a patriotic flavor. There's a word for that you know.

As opposed to overt conservative wealth redistribution that Republican-controlled government put into place to hand out US tax dollars to Mexican illegal aliens and changing the banking laws to allow them into the US banking system to obtain credit cards, home, auto and business loans?

This argument does nothing to justify the Klunker program.

If my brother-in-law wants a piece of this pie, then perhaps he should offer me more than $250 for my $1000 car.

Your brother-in-law isn't the government, so unfortunately he doesn't have my tax dollars to offer you.

So, you're mad at what the owners of these cars, i.e.: private property, are doing?

As I stated before, I am IRATE that the government is purchasing and then destroying perfectly good cars. While the automobile belongs to the owner it is in fact "private property" and I certainly do not care what happens to them. Once they are purchase by the government through a loan from the Chinese on which I am a co-signer, they become public property. During the worst economy since the Great Depression, I don't think it is wise public policy to destroy valuable assets for the sake of the green Earth-God.

Seeing how you were unable to grasp the very simple logic of my first post, I doubt you will be able to grasp the very simple logic of this one but at least I have tried.

To review........

Demolishion Derby - Private Property, (Don't Care)

Government Spending 4500 for cars - Public Funding of socicalist stupid idea, (Don't Like)

Goverment Destroying Cars - Destroying value of public property, (Makes me IRATE)

Get it???

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