Transportation Secretary Ray LaHood is predicting the Senate will pass legislation adding $2 billion to save a financially strapped “clash-for-clunkers” car-buying program.
LaHood said Monday that the program has been “wildly popular” and argued that it is good for the economy as well as the environment. In an interview broadcast on MSNBC, LaHood declined to discuss administration options if the Senate does not act before it goes on its summer recess at the end of the week.
LaHood said, “We’re encouraging senators to listen to their car dealers and the people they represent. If they do that, it will pass the Senate
THIS BUREAUCRAT DOESN’T BOTHER TO MENTION THAT A LARGE PORTION OF THE TAX PAYERS MONEY BEING SPENT IN THE “CLUNKER” PROGRAM, IS GOING TO THE NEW GENERAL MOTORS. NOW OWNED BY THE GOVERNMENT!
This despite that the economy is performing worse than hoped, and revised White House figures point to deepening budget deficits, with the government borrowing almost 50 cents for every dollar it spends this year.
The deficit for the current budget year will rise by $89 billion to above $1.8 trillion — about four times the record set just last year. The unprecedented red ink flows from the deep recession, the Wall Street bailout, the cost of President Obama’s economic stimulus bill, as well as a structural imbalance between what the government spends and what it takes in.
Like all legislation that is passed hurriedly, the clunker scheme has many unintended consequences!
This program could decimate the used car market that was before this debacle was instituted, the source of cheap transportation for the POOR and the young who just need a car to get to work or school!
It will also reduce the pool of spare parts used to repair existing older cars that are involved in accidents. Thus hurting another business, the ‘fix-a-wreck” business.
This program is a joke. It is taking affordable vehicles for the poor off the road and giving away taxpayer money to those who would buy a car anyway. All it is doing is pushing auto sales forward by a few months. Once the program ends auto sales will be lower than ever.