Love how he ties the bad management of “Cash for Clunkers” in with the very idea that we should trust government to get into the healthcare coverage business:
“The role of the federal government is not to run the used car business,” South Carolina Sen. Jim DeMint said on Fox New Sunday. “I just think this is a great example of the stupidity coming out of Washington right now.”
DeMint has quickly become the Tom Coburn of South Carolina. I hope my friends down in the other Carolina keep this man in the US Senate for as long as he desires to be. He’s plain spoken and doesn’t put on any airs, and continually works not for big government but for the little guy. He’s one of the few people in Washington, DC who hasn’t forgotten who put him where he is.
Related to “Cash for Clunkers”, check out this video of a what appears to be perfectly good Volvo being destroyed as part of the CforC program:
The Cash for Clunkers program is stupid for a lot of reasons. Not only is it just another tax-payer bailout of the
unionsautomakers, who can sell more cars at artificially depressed prices so they can keep the doors open. It also screws with the free-market (big surprise there) by pulling forward demand that isn’t there now, only to kill demand over the next 1-2 years. Killing off the clunkers also hurts the used car market, the spare parts market, and the auto repair business. If there aren’t any old cars to buy or fix, those guys are all out of a job.
But one of the most asinine parts of the plan is that they take old cars, many of which were being used as functional day-to-day transportation the day before, and destroy them. A perfectly good and useful machine destroyed for political reasons.
In a normal world, you take your trade-in to the dealer, he buys it from you, and then he resells it at the auto auction. It is the most efficient allocation of resources for the product. In this case, the government buys your trade-in and, instead of using it for its full value, it destroys the vehicle.
Exactly, but the purpose of CforC is to get those cars off the road – period – in the name of helping to “save the environment”, but there are a lot of people out there, especially right now, who could better afford a “previously owned automobile” like the ones that are being “given back” under the CforC program than the more allegedly “environmentally sound” hybrid vehicles. Heck, even if I wanted to buy one – and I don’t, because I don’t think most of them are especially safe for both passengers, pedestrians, and first responders at the scene of an accident – I couldn’t afford to. The Ford Fusion Hybrid is close to $30K, and the more “economical” hybrids like the Honda Insight have gotten decidedly mixed to bad reviews in terms of comfort, handling, speed, safety, and the upkeep expense.
Related reading: Interesting facts about hybrid drivers.