Our auto industry is hurting due to a slow economy and our congress came up with a solution to stimulate the auto industry.
Cash for clunkers was the solution to trade in fuel guzzlers for a fuel efficent car, but the one fact that makes car lovers enraged is that these cars you trade in will be destroyed and their engines will be trashed at the same time.
A column on Red State shares sadness at perfectly good older cars facing their demises. There are videos on Youtube showing how ten year old Corvettes, 2001 Mazda light pickups and other functional vehichles getting destroyed.
Cash for clunkers may of helped to promote the auto industry, but it has shortcomings that shows the government can not manage a program like this, how can they manage to take over one seventh of the nation’s economy?
This program is only a tempoary blimp, when the program ends auto sales will stagnate. Also used car prices have increased due to the reduction in supply. Our older cars are going to have a tougher time in getting parts if the cars are going to be scrapped instead of being in the pick a part junkyards.
Sadly cash for clunkers did not have any protections against people defaulting on their cars, and a proposal to limit the 4500 in credit to people under a certain income level also got rejected too.