The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Cash for Clunkers Cost You $24,000 Per Car! Government Efficiency in Action!

Posted by iusbvision on November 24, 2009

It cost you $24,000 to hand out a $4,000 check for each new car that wouldn’t have been solde anyway (and most of that went to Japanese cars).  Why?

One reason: The thousands of bureaucrats hired to administer the program knew that the program was temporary so they tried to extend the program by rejecting as many applications as possible, knowing that denied filers would refile and thus keep their government finding incoming. And these are the people that some want running health care.

CNN:

White House blows a gasket on Clunkers critique

The Cash for Clunkers program gave car buyers rebates of up to $4,500 if they traded in less fuel-efficient vehicles for new vehicles that met certain fuel economy requirements. A total of $3 billion was allotted for those rebates.

The average rebate was $4,000. But the overwhelming majority of sales would have taken place anyway at some time in the last half of 2009, according to Edmunds.com. That means the government ended up spending about $24,000 each for those 125,000 additional vehicle sales.

“It is unfortunate that Edmunds.com has had nothing but negative things to say about a wildly successful program that sold nearly 250,000 cars in its first four days alone,” said Bill Adams, spokesman for the Department of Transportation.

 

One Response to “Cash for Clunkers Cost You $24,000 Per Car! Government Efficiency in Action!”

  1. Cash for clunkers cost taxpayers a lot of money. It also cost the poor and car donation a lot.

    [It sure did, and considering how Obama has proposed to cut the charitable tax deduction he wants to get charities both ways. – Editor]

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