Cash For Clunkers: Do You Mind Paying For Someone Else’s Car?

Really, the Cash for Clunkers deal is another government program where one part of the population subsidizes another part of the population.

First, banks.

Second, houses.

Third, car companies.

Fourth, extended unemployment.

Now, cars for citizens.

Part of me doesn’t mind the last one because there is at least something tangible coming out of this subsidy and each car is probably taxed at $4,000 when it’s all said and done, so it’s like a tax-free weekend for cars. Still, one part of the population is being taxed to give the money to another part of the population.

Cash for Clunkers is another redistribution of wealth. Period. It is immoral, even if the consequences are helpful in the short term. Imagine writing a $4000 check to your neighbor to buy his car that he likely can’t afford anyway. Suddenly, the program doesn’t seem so nice.

And actually, if the President gave a rats ass about the economy and believed that stimulus was the way out of the misery, he’d put forth more programs like the Cash for Clunkers deal–something that infuses the economy immediately. Still, the stimulative effect will last only as long as the incentives are in place. The economy itself feels so unstable, people don’t want to take risks. They are hoarding their money…until lulled out of their saving with enticements like Cash for Clunkers.

What the Cash for Clunkers deal illustrates is that money in the Free Market makes a difference. Had the government given every voting citizen a sum of money, instead of bloating the bureaucracy, the recession would be over, jobs would be created and the government would be smaller. But the goal of the President isn’t to end the recession, it’s to end the concept of small government. The goal is to empower the state. And Cash for Clunkers is just one more way Daddy Government Man controls the purse-strings and the livelihoods of Americans. Their happiness depends on Uncle Sam’s cash. That’s where the equation goes wrong.

Note: As an aside, should John McCain and the Republicans come out against this program? It is popular and it is tangible. Strategically, I think the Republicans should note what I have and save their fire. I put this in the same category of Sotomayer. It’s going to happen, might as well make the most of it.

Also, I think the lesson learned here, is that people with money in their pockets will do more for the economy that stupid “shovel-ready” (really unready) projects. It’s called trickle down…..it works….in the short term, at least.

UPDATE: Fiery Dog says Americans are selling their souls for $4000.

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