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The Reality Over “Cash For Clunkers”

31 July 2009 One Comment

Today, it seems, that we are living in economic bliss. The recession is over. Most people on TV at least say so. One of the brightest moments today was the overwhelming the praise of the “cash for clunkers” program where the government is basically paying people to buy a new car.

Even on CNBC today while the House of Reps was voting on whether to extend this program because of the extraordinary success of it, one of the broadcasters when noting the dissenting votes said, why would anyone vote against it?  Well, I’ll explain why someone should vote against it.

This program lets a person trade in their car for a new car and get up to $4500 from the government.  Sounds like a good deal right?  Well, first, it only applies of the dealer destroys the car (because otherwise we’re not improving the planet).  Second, this is doing nothing more than encouraging people to take on debt.

Our government is paying people to destroy fully paid-for cars to borrow money for a new car! I know happy days are here again and everything, but how we’ve already forgotten how we got into the recession that is apprently irrelevant now.

Our government is cheering on the borrowing of money when we should be saving every dime possible because only by spending does our GDP numbers improve.  Rather than increase savings which will be the basis of future solid economic growth, we’d rather blow up a perfectly drive-able vehicle and borrow money for a new planet-saving vehicle.

I gotta stop watching the news…

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