Congress Just Buying People Cars Now

Cars? People still buy those things?

I wonder how much non-drivers' taxpayer money goes to subsidizing others' choices of transportation like this...

The don't mod down if you disagree rule here isn't doing too good lately :)

Anyway, Yes, people still buy cars, that's for sure. Not as much as before, it is one of the industries that is hit hardest by the so called crisis. The theory goes that if the car industry can be rescued at least when we get out of this crisis the recovery will be a bit quicker.

Good point about the non-drivers' taxpayer money though, I hadn't thought about that at all. It's not an obvious point and - as a driver - I would feel uncomfortable about using such a subsidy but then again I have tried hard to stay away from subsidies as much as I can.

My theory is that subsidies are a subtle way of getting in to an unsustainable situation, it's living above your means by another name.

Sure, everybody else does it but that doesn't mean it is a good thing. Some subsidies I can see the point of, such as subsidized housing or food for people below the minimum income level required to have a chance to get out of that situation. But even there there are two sides to the coin, for some that works well, others lose their self respect because of receiving the money and give up altogether.

There are no easy choices these days, 'cash-for-clunkers', even if it is asymmetrical and will not have the positive effect on the economy that the pundits claim it will have has some positive side effects. Transportation is one of the major engines of the American economy, what with the government now being a large - and somewhat involuntary - shareholder in a car company you can't really blame them if they want to at least improve the market for vehicles so they can recover some of the money through the backdoor and create the right conditions for an exit.

Another downside of the cash-for-clunkers program is that it moves sales that would have happened anyway into a shorter window of time nearer to the present. The usual effect of such an activity is that it will be followed by a slump.

good to see people arriving at reason from various angles. subsidies are zombie demand that encourage malinvestment from the private sector.

Can I have a $4500 voucher for a new bicycle? It uses no fossil fuel at all. (I estimate that an 18-pound bike will cause me to consume one less banana per week, compared to my current 21-pound bike. This will save hundreds of bananas per decade.)

What we have here is a wasted opportunity.

This program could have required a 10 mpg improvement and could have been set up to require at least 28 mpg on the new vehicle, by using two different numbers, and it would still be very successful and have made the US less dependent on foreign oil imports. Oops.

Too much influence have the firms that make "campaign contributions".