Video: The (Vaguely Disturbing) Death of a Clunker

[cobra de capell]

Originally Posted by Doug I

So these cars that people bring in to get their up to $4500 are all actually being destroyed ? Or do they go into the national pool of second hand cars available ?

That'd mean that a student etc who has, say, $2000 for a car might actually get a 'better' car now for the same money as they would have a few months ago. I'm hoping that there'll be a 'trickle down' effect on improving the national fleet rather than a polarization of the extremes on it.

They are actually being destroyed - that's the only way the feds will pay the money.......they want them off the road, period.

[cobra de capell]

True, but rebates are only available to those that can afford a new car at this time. Those people are already doing well and are confident that they will have a job to pay for it. It really doesn't stimulate the economy in the long-run - it's only a short-term stimulus just like the entire stimulus package. Yes, tax cuts would not kick in for awhile, but give them to business entities and they will use them for R&D and perhaps hire more workers. Targeting tax cuts have worked well in the past.

[cobra de capell]

The subsidy won’t add to net national wealth, since it merely transfers money to one taxpayer’s pocket from someone else’s, and merely pays that taxpayer to destroy a perfectly serviceable asset in return for something he might have bought anyway. By this logic, everyone should burn the sofa and dining room set and refurnish the homestead every couple of years.

This is crackpot economics.

[1ntCobra]

Hasn't this thing already run out of money very quickly? Assuming they don't keep on dumping more money this way, I would assume that they will only get rid of a very, very, very small portion of the cars that the tree huggers dislike.

From what I've heard, if you are replacing a mini-van, suv or truck with another vehicle of that type, that you don't really have to increase the gas mileage of the new purchase much. It is only if you replace a gas guzzler with a passenger car that you have to really increase the mileage to get the money. You know the tree huggers really want you to get rid of the Excursion and get a Prius. But considering you can get rid of your suv with a new suv with slightly better gas mileage, I bet the tree huggers are crying about that situation.

[Dan40]

Originally Posted by 1ntCobra

Hasn't this thing already run out of money very quickly? Assuming they don't keep on dumping more money this way, I would assume that they will only get rid of a very, very, very small portion of the cars that the tree huggers dislike.

From what I've heard, if you are replacing a mini-van, suv or truck with another vehicle of that type, that you don't really have to increase the gas mileage of the new purchase much. It is only if you replace a gas guzzler with a passenger car that you have to really increase the mileage to get the money. You know the tree huggers really want you to get rid of the Excursion and get a Prius. But considering you can get rid of your suv with a new suv with slightly better gas mileage, I bet the tree huggers are crying about that situation.

Crying is the tree hugger's best thing!

[cobra de capell]

From Rush today - the Department of Transportation had to hire 300 additional employees to take care of the paper work relating just to this program.

Good news - the Senate is not all that happy with adding another $2 Billion to this program.

Think about it - the Congress and Administration 'projected' a need for $1 Billion to cover this program through year-end - it ran out of funds in a few weeks - now, let's add the entire health care system takeover based on Congress/Administration estimates of it costing $1 TRILLION - anyone want to bet that the cost will not be double or triple that amount in just a few years?

Clean up and fund Medicare, Medicaid and Social Security first - once that is done, see if there is any extra money - without increasing taxes of anyone.....