LETTER TO THE EDITOR:

‘Clunkers’ program wasn’t well thought out

Martin Dean Dupalo, Las Vegas

Saturday, Sept. 26, 2009 | 2:03 a.m.

Congress put together the Cash for Clunkers program at a dizzying pace during June, crafting (or, more appropriately, slapping together) the policy in line with the expectation of trade groups that there should be no restrictions as to the country of manufacture of purchased vehicles. This was done despite the fact that the U.S. taxpayer would foot the entire bill for the policy.

Capitol Hill policymakers were unduly influenced by varied interests and refused to take note of the German “clunkers” program, which provided a cautionary lesson on how such policies might be crafted. That program, funded at $7 billion starting in February, ended with 76 percent of the purchases being inexpensive foreign cars rather than German-built vehicles.

Germany lost out on a golden opportunity to provide a more substantial boost to the manufacturing sector of its economy. Blindly, the U.S. clunkers policy yielded similarly low numbers — only 39 percent of vehicles reimbursed were U.S.-manufactured.

Legitimate questions about the limited “green” benefit of Cash for Clunkers programs remain. Arguably the bar for the fuel efficiency of qualifying cars could have been set considerably higher.

One might also question the poor planning and implementation of this program (particularly the reimbursement aspect). But it was the lack of focused, effective attention to policy and country on how Cash for Clunkers could have provided a more substantial shot in the arm for the America’s automobile manufacturing sector that I found most troubling.

And though no policy initiative is perfect, Cash for Clunkers had the potential to be more than it was. With no clear goal stated and no metrics to gauge, a $3 billion stimulus initiative should have primarily benefited U.S. taxpayers, consumers and workers and, secondarily, foreign countries, not vice versa. In its inception and through its development, unfortunately, few if any had the will to argue “Buy American” for fear of sounding … proud to be an American.

Discussion: 13 comments so far…

By LarryVegas

9/26/09 at 7:05 a.m.

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Too bad the programs was not called "Cash for Clunkers." We could have traded in some old, money guzzling, high maintenance, bad performing Senators and Congressmen in for newer models.
By neiman1

9/26/09 at 8:07 a.m.

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Toyota sold more cars than anyone and as the program ended announced the closing of their only west coast plant in Fremont Calif. to end unemploy 4,500 direct workers and 35,000 at companies that service and supply the plant.

Yesterday the Energy Department announced a half a Billion dollar loan to a car company backed my Al Gore to build green sports cars to sell for over $80,0000 to be built in Finland.

Does anyone really think this administration has a clue what it wants to accomplish. It's a bunch of amateurs raiding the treasury and giving it to each other.

We pay the bill without a job.
By casinokid

9/26/09 at 8:25 a.m.

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Are some people geting confused just because it is American Engineered doesn't mean that it is American made. The Toyota Tundra is American made, Hyundai Sonata is also American made, Some people talk of protectionism but contradict themselves when standing at the pump filling ther tank with arab oil that doesn't contain ethanol,Ethanol that is made here in America by Americans and sold to the oil companys.
It was my understanding that the program was also to reduce the amount of fuel that would have to be imported, This program will save 168 Million barrels of oil being imported thats why gas prices are going down and isn't it nice to know that some arab is standing in the unemployment line instead of an American.
By SgtRock

9/26/09 at 9:46 a.m.

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Why not give everybody in the USA, $25,000 each??????

We would party like there would be no tomorrow because with all these $2 trillion deficits and trillion dollar deficits as far as the eye can see there is no tomorrow.

Feel very sorry for the generation that is going to have to live through the period when the Chinese and others start demanding very high interest rates to buy bonds and they start to dump the US dollars.

There will be super hyper inflation and the government on top of that will radically increase taxes and radically cut all programs. Unemployment will be over 20%. People will be begging for food in the streets.

It will be a miserable time.

But heck, we will probably not have to deal with it for we will long gone dead.

Let's party!!!!!

The heck to Cash-for-Clunkers....Give me my $25,000!!!!!!
By uddeboda

9/26/09 at 11:24 a.m.

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SgtRock,

Now youre talking sense, Whats happened.
By LarryVegas

9/26/09 at 11:26 a.m.

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This "Cash for Clunkers" was such a joke.

I took the "Bird" in, to trade for some cash.

The salesman told me, the "Bird" was too brash.

Too many miles and loose as a goose.

He said the "Bird" looked like he was had by a moose.

I was hopping for cash, until the "Bird" started his trash.

Out of his mouth, came forth such a spill, that the salesman said no deal, that bird aint for real.

Leaving the store, the "Bird" took a dump, right in the middle of the floor.

I heard the salesman roar, as we went out the door.

"No cash for the "Bird" he is such a turd."
By LarryVegas

9/26/09 at 12:34 p.m.

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The federal government has loaned $529 million to Fisker Automotive Inc., a small car company backed by Gore to help build a hybrid sports car in Finland that will sell for about $89,000, the Wall Street Journal reported.

Talk about Cash for Clunkers and the government's concern for U.S. Auto makers.

A thought just occurred... If there is a government takeover of our health care system, maybe the government will farm out certain medical procedures to Mexico and Canada...
By KillerB

9/26/09 at 1:09 p.m.

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"Why not give everybody in the USA, $25,000 each??????"

SgtRock -- as much as it pains me to agree with you, you actually made a good point.

Last fall a friend proposed to CNN that instead of TARP bailing out AIG, banks, etc., it instead give every citizen an equivalent amount. The average family would get something like $400k which they could use to pay off their mortgages, etc. The point was the "money" would be injected right where it's needed the most, the suffering local economies. CNN picked up on it, quoted him. And just when it was getting up a good head of steam, the feds shut it down by threatening to pull their license if they didn't hush up.

A good lesson for anyone who still thinks the feds do ANYTHING for our benefit.
By teamster

9/26/09 at 3:23 p.m.

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Cash for clunkers worked. Check the window
sticker before you buy. I only buy union made,
assembled in America cars.
If Americans buy Toyotas and Hondas they
better not complain about job loss in America.
Even if assembled here, the money base is still
in Japan.
By mred

9/26/09 at 3:28 p.m.

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dittoheads regurgitating the talk radio crap about fiskars, most Japanese makes are manufacture in the US or Canada, German brands in Mexico or the U.S. in the southern states.
many of GM Ford Chrysler are made in Canada or Mexico. The parts networks are worldwide.

Sun should have rejected this letter because it didn't have facts right.
By LarryVegas

9/26/09 at 4 p.m.

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Here's mred with his name calling and putting down those who don't agree with him. He just can't live without it...
By larry5

9/26/09 at 6:25 p.m.

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The cash-for-clunkers disaster had no income limit for those who would benefit from it. I make about $40,000 a year. I helped pay a substantial part of the cost of some new cars for people who might make a half a million dollars or more.

To those of you who feel the program was worthwhile - you also helped pay for new cars for some wealthy people. You are either morons or Obama cultists.
By teamster

9/26/09 at 11:22 p.m.

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mred:

Profits from GM, FORD and CHRYSLER go to
America.

Profits from HONDA and TOYOTA go to JAPAN.

BUY AMERICAN.