Cash For Clunkers, The Hidden Agenda
Tim Williams
August 02, 2009
If the United States wanted to emulate the European version of eliminating old fuel inefficient automobiles that would be a positive approach. What actually has occurred is quite different. The Government in it's haste to dole out additional tax dollars to the already beleaguered auto industry has virtually given this industry a "free lunch " at the expense of the public. It may seem like a good idea, but it is just another case where the government knows exactly what the American citizens want and need right now. Not so fast! There is going to be a huge backlash soon because the government cannot keep funding the auto industry using future tax revenue to boost car sales. In all the billions of dollars that the United States have given the auto industry to come up with a program using more future tax revenue is a fiscal disaster that is going to happen, again.
To solve the many issues of today we have to find out not only the root causes of our economic troubles but the reactions and effects of what has happened. To begin with the old saying " have more of our population with enough deposable income to spend or pay down debt is the greatest economic stimulus for any economy." The problem is that 90% of the population of the United States doesn't have the income sufficient to even cover their own day to day expenses. All the government should do is to provide some means of employment opportunities for the millions of people out of work, like President FDR did in 1935 that improved our infrastructure and made it possible for the millions of citizens who were out of work to become employed and thus created economic momentum that pulled the United States out to the Depression. This would prove more beneficial in the long term for our economy than just keep funding the auto industry with tax dollars.
Another factor to consider in this Cash for Clunkers program is that it excludes the thousands of smaller independent auto dealerships from benefiting and thus their sales will plummet which will push these businesses out of business and creating more unemployment. With the restrictions placed on the type and mileage of the vehicles that are acceptable under this program really doesn't provide much relief in the way of eliminating green house gasses. What would be a very wise move would be to but this money into producing natural gas or some other type of non fossil fuel automobiles at affordable prices so that the 90% of the population will be able to afford them.
Putting more people back to work with real living wages is the greatest effect to boost auto sales. Along with the technology that is now available to be part of the manufacture of automobiles is going to create more of an economic and climate regeneration that will benefit not only the United States but the rest of the world.
To solve the many issues of today we have to find out not only the root causes of our economic troubles but the reactions and effects of what has happened. To begin with the old saying " have more of our population with enough deposable income to spend or pay down debt is the greatest economic stimulus for any economy." The problem is that 90% of the population of the United States doesn't have the income sufficient to even cover their own day to day expenses. All the government should do is to provide some means of employment opportunities for the millions of people out of work, like President FDR did in 1935 that improved our infrastructure and made it possible for the millions of citizens who were out of work to become employed and thus created economic momentum that pulled the United States out to the Depression. This would prove more beneficial in the long term for our economy than just keep funding the auto industry with tax dollars.
Another factor to consider in this Cash for Clunkers program is that it excludes the thousands of smaller independent auto dealerships from benefiting and thus their sales will plummet which will push these businesses out of business and creating more unemployment. With the restrictions placed on the type and mileage of the vehicles that are acceptable under this program really doesn't provide much relief in the way of eliminating green house gasses. What would be a very wise move would be to but this money into producing natural gas or some other type of non fossil fuel automobiles at affordable prices so that the 90% of the population will be able to afford them.
Putting more people back to work with real living wages is the greatest effect to boost auto sales. Along with the technology that is now available to be part of the manufacture of automobiles is going to create more of an economic and climate regeneration that will benefit not only the United States but the rest of the world.
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