Final results are in confirming that the Cash for Clunkers program was just a Three Card Monty street hustle.
First, taxpayers bail out failing auto manufacturers with tens of billions of dollars. Next, to generate sales to these same companies which taxpayers represent, the majority owner (Uncle Sam) offers $4,500 rebates to trade in older cars with poor fuel efficiency to promote the sales of cars with better fuel efficiency.
One billion dollars was insufficient, so Congress authorizes and appropriates another two billion dollars which doesn't exist. Add three billion dollars more on top of a record $1.7 trillion dollar deficit this year. Worse, we destroy the older cars.
At the end of the day, Uncle Sam took money out of one taxpayers pocket and put it in another. This temporary sales spike quickly ended. The used car sales market now suffers from fewer available stock. College students, single parents, working and middle class Americans looking for a used car to get to school or work have fewer but more expensive used cars to select from.
The air quality benefits of newer versus older cars at the end of the day have had insignificant impact on the environment in most communities.
Additionally, our national jobless rate of over 10% should give all Americans regardless of political affiliation pause for concern. When you add in those working part time with others who have given up looking, the real number of unemployed is over 17%.
Under President Obama and a Democratic controlled Congress, unemployment has grown nationally from over 7% to 10%. $789 billion in American Recovery Reinvestment Act (ARRA) funding has failed to reduce unemployment. We currently face the highest unemployment rate in 26 years with 15 million Americans out of work.
14 states face double digit unemployment. Until the final verdict is in, it is premature for Congress to consider adding hundreds of billions more to our eleven trillion dollar debt by funding a second stimulus package. We just can't afford to do this, especially if Congress passed a health care bill which may add another trillion more in national debt. Uncle Sam can't keep borrowing forever without consequences to our future financial solvency.
Maybe it is time to introduce mandatory drug and alcohol testing for members of Congress before they vote on more crazy legislation such as "Cash for Clunkers" and Son of Stimulus Part 2!
Many taxpayers can hardly wait until the 2010 elections to "trade in" their current Congress member for a fresh new model who is more efficient at not wasting our hard earned money.