"Should the bill pass, the "Cash for Clunkers" program would reimburse drivers with a credit of $2,500 to $4,500 for drivers who turn in fuel-inefficient vehicles to be scrapped and purchase a more fuel efficient vehicle."
Sounds like an automotive version of gun buybacks, and equally as silly.
If the goal is to save the environment, tying the credit to the purchase of a new vehicle just takes a perfectly good car whose environmental costs have already been incurred out of circulation.
If the goal is to reduce oil consumption, using taxpayer money to fund the purchase of new cars, instead of getting affordable, useful mass transit, seems like a horrible waste of money.
Clearly, this is designed to prop up the auto industry. By reducing the number of used cars on the market, which compete with new cars, and using taxpayer money for what normally would be the trade-in value of their car, they're artificially reducing the supply of cars in the country in order to drive sales of new cars. This has the effect of screwing over people who would never be able to buy a new car, since there will be a reduction in the supply of used cars.
But that's ok. The government wants you to get deeper into debt to buy things you can't afford. That's the ticket out of this recession!
