Last today, the "cash for clunkers" program has already run out of money. Under the legislation that created the program, Congress could authorize another $3 billion for clunker rebates around the country. Until then, the program is "There is a BIG problem with the 'cash for clunkers' program!" exclaims a reader. "The only people that are eligible for it are the rich and stupid! Like the idiot that bought a Cadillac or Lincoln with a big V-8 engine. They get 16 miles a gallon, and if they trade it in on the identical car now that gets 20 mpg (The required 4 mpg increase), they save 20% in fuel consumption.
"Now, if this program were to be effective and fair, it should have no limit on the mpg of the clunker, only a percentage of the fuel saved. They should also include the people that drive a sensible car (getting 25 mpg for a compact) that trade in for a fuel-efficient car (Toyota Prius that gets 50 mpg). That trade would reduce fuel use not by 20%, but by 50%.
"What madness," writes the last -- this one our favorite. "The central planners have established a program in which significant wealth (the cars and trucks, most of which are fully functioning) of a society is junked to stimulate demand for products from a government-owned business. This is reminiscent of some of the silliness that issued from the Cultural Revolution. Oh, did I mention we are borrowing the money to pay for it?"
"What madness," writes the last -- this one our favorite. "The central planners have established a program in which significant wealth (the cars and trucks, most of which are fully functioning) of a society is junked to stimulate demand for products from a government-owned business. This is reminiscent of some of the silliness that issued from the Cultural Revolution. Oh, did I mention we are borrowing the money to pay for it?"
Have a nice weekend,
Ian Mathias
