Saturday, August 1, 2009

Another disastrous social program needs to be bailed out

After tens of billions of dollars where thrown at Chrysler and GM to prevent them from going bankrupt, which they did anyway, the taxpayer continues to fund the auto industry. The 'Cash for Clunkers' program which pays people to turn in their old vehicle for a new more efficient one, ran out of money yesterday after running for an amazing 8 days....yep 8 Homer says..."Doooop!" Another $2 billion (thats $2,000,000,000) is to be injected into the program. I have 2 questions....

1. What is being done with all the clunkers? I know the engines in the clunkers are to be disabled, but then what? The scrap yard business (or any for that matter) isn't exactly hopping these days, and the environmental impact of a rotting vehicle isn't exactly positive.

2. Are we setting up for more defaults on loans (new fuel efficient cars cost wayyyy more than the $4500 paid per clunker)? The jobless rate is still rising. We are creating an artificial uptick in the economy which will show it's true state in just a few short months.

Companies that are poorly managed need to fail. Injection of cash into already bad business models is sheer stupidity.

Not to digress...but do you really want the government in control of your health when a $1 billion (soon to be $3 billion) program goes belly up in 8 days?.......nice.

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