Here's the plan:
If John Q Citizen trades in his existing vehicle and purchases a new vehicle built by certain manufacturers, the dealer will give him a $4,500 rebate for his trade-in. This rebate is subtracted directly from the purchase price of the new vehicle. Good deal. Added to this, the "government" will match the dealers' rebate by giving him another $4,500 for his trade-in, totaling $9000. Wow, he's going to get $9000 for his trade-in, no matter what it's condition!!!! John Q citizen is elated at this windfall and thinks he's getting a GREAT deal. Well, let's look a bit closer at this gift horse.
Unfortunately, a huge number of Americans have become so conditioned that they think the "government" is some autonomous, independently wealthy sugar daddy, with an inexhaustible source of it's own funds at it's disposal. NEWS FLASH, FOLKS. The "government" doesn't have a red cent of it's own. The only money the "government" has is that which it steals from the American producers by way of taxation.
As you all know, earlier in the year the "government" gave BILLIONS of dollars to the same car companies that are now offering these $4,500 rebates. The car companies are using the funds given to them by the "government" to back these wonderful offers. Then, to add insult to injury, the "government" is offering an additional $4,500 to match the car companies' rebate. How hard is it to connect the dots? The "government" has taken money from John Q Citizen by way of taxes. The "government" bailed out the failing car companies by giving them BILLIONS of John Q Citizens money. The car companies and the "government" gives John Q $9000 of his own money as a rebate on his car purchase. If it sounds like John Q has come out even, don't cheer to quickly. Old John Q still has to pay more taxes to make up for the money the "government" has given the car companies (and John Q) in the first place. And Bernie Madoff is in jail why??
As if this program is not bad enough at this point, we need to consider a few more indirect repercussions. Historically, when a car is traded in on a new purchase, it can follow any one of several routes. If the trade-in is still in all around good shape, it heads for the used car lot. If the engine is no good but the body is in good shape, the car is sold to a junk yard for parts and the engine goes for scrap metal. If the engine is still good but the body is shot, it heads for the salvage yard where the engine is removed for recycling and the body is crushed for scrap metal.
With the "CASH FOR CLUNKERS" program, the entire car is supposedly crushed. This deprives the used car lots and the junk yards of potential business. According to experts in these businesses, this program will not only deplete the number of available used cars, thus depriving a large portion of the populace of the ability to purchase an affordable car, (everyone cannot afford a new car) it will cause the loss of jobs in the car parts industry.
As the final unforeseen and inevitable outcome of this merry-go-round of folly, there is no oversight to assure that these "clunkers" will actually be crushed in their entirety. But, we don't have to worry about compliance with the rules and regulations of this program, now do we? We all know that car dealers are the most honest and trustworthy folks on the planet.
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