Well, what do you know? Remember the “stimulus” program the Democrats foisted on us to rescue the government-owned automakers from bankruptcy that handed out free cash in order to push people into auto dealerships? It ended up costing taxpayers a whopping $24,000 per vehicle sold, and trashed the financial position of thousands of auto dealers who experienced huge delays in getting reimbursed. To make things worse, we still haven’t seen the full fallout of this program yet, which might rival the financial consequences of Obama’s plan to “save or create jobs” that has been costing taxpayers $532,000 for each job “saved” or “created” so far.
Here’s the tip from Snapped Shot on what you and I had to pay for this boondoggle:
We learn today that, after all’s said and done, each car traded in using the Cash for Clunkers program ended up costing the U.S. taxpayer–that is, it cost you–a grand total of $24,000.
For a paltry $4,500 “credit” that’s taxable in the end.
Here’s where it really gets interesting: In order to spur sales, not only were folks lured into the showroom with free government money dangling before them, but with relaxed financing requirements. Almost everybody qualified for loans in this feeding frenzy, and lots of people couldn’t have afforded these cars with only about a 5% discount courtesy of the taxpayer and needed an extra incentive. So many who otherwise might have exercised some personal fiscal restraint got spurred into turning in their perfectly usable, and mostly paid-for car in order to get something brand new with 100% financing. During a bad economy.
I’m hearing the rumbling that the default rate on the auto loans made during the “Cash For Clunkers” program is enormous already. The real objects of this “stimulus” may well be reposession companies that are going to be busy stealing back all those new cars, leaving folks in worse financial shape than before the program started, and with no transportation to get to whatever work they can manage to find. What are those folks going to do? They’ve little choice but to go hunting for some old beater — a “clunker” — that they can get for cheap paying cash, while that nearly spanking new Prius they had bought sits on a used car lot waiting for a non-existent buyer.
“Clunkers For Cash,” the follow-on to centralized economic planning from our federal government. These federal elected officials are complete idiots for pulling this stupid stunt.
As Brian over at Snapped Shot retorts, do you really want the folks responsible for devising these idiotic programs taking over the entire health care system in this country?
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