The World's Largest Demolition Derby

AKA - Cash for Clunkers - You know, it figures that just when I've finally convinced myself to take my old Nissan pickup truck in and take advantage of the new CARS program, they'd run out of money. It finally made sense to me when I did the math that I could get $9,000 on a Chrysler vehicle for the truck that I spent $11,000 on a lifetime ago. I was slowed down trying to figure out how my in-laws and neighbors were going to get mulch and make landfill runs in that new convertible Sebring my daughter had her eyes on (you truck owners know what I'm talking about).

C.A.R.S is a typical good news/bad news program. The good news is that "Cash for Clunkers" was/is a success. People across the country leapt at the opportunity to trade in their old cars for newer, more fuel efficient models. Mission accomplished! 

The bad news... "Cash for Clunkers" was/is a success. 

1) The program is running out of money, if not completely broke already. So many consumers came in and traded in their crummy old jalopies for new jalopies that congress now needs to refill the pot. (AP covers it here, Yahoo News here ). Some folks are eager to push the legislation through soon so as to avoid any delay in getting people their discounts, some have decided to go all Maverick on the situation (Guess who?). But the general thought is "How many times to you offer the deals before you're just subsidizing every car sold in America?" 

2) The dealers, while reporting an upswing in sales (like Ford did for the first time in a LONG time), are complaining that they don't have the inventory needed to meet the demand. So they're in a Catch 22 - how many do you re-order, not knowing whether the demand will last OR if the government will keep plunking down the $3,500 they promised?

3) What do you do with all the junk from the clunk? Disabling the cars is a laborious process, and quite confusing. Why destroy the engine? The previous story says it's to ensure that it won't be back out on the road, guzzling gas and polluting the air. Well intentioned, but how about all the other parts of the car? Hey, I've got a great idea. 

It's August and the official start of County Fair season. Let's take all these clunkers and put them to work in the demolition derby. We can fund the program with admission tickets and I'd even pay to drive a car in the derby! It's either that or the government starts printing more money and adding to the debt that our great, great grandchildren will have to pay back...

Comments

[Elliott]

The program seems to have been a success, at least from those who directly benefited from the program, but I can't help but wonder if this is just another massive "broken window" dilemma.