There have been lots of problems with the administration of the “Cash for Clunkers” program. The problems with changing standards, crashing websites, and other bureaucratic snafus doesn’t exactly instill great confidence in the government’s ability to administer some of the other sprawling programs that are being debated in Congress.
What also seems clear, however, is that the program has caused people to turn in their older cars to get the funds to be used for new car purchases — so much so that Congress already is talking about appropriating billions more to continue the program and try to ensure that no dealer gets left in the cold. With the “Cash for Clunkers” program at least giving some kind of boost to auto sales, we can expect other struggling industries to go to Congress, hat in hand, and ask for their own special stimulus programs. Before Congress votes more money for these kinds of programs, though, I hope that there is at least some consideration about the efficiency and value of industry-specific programs. Is it really creating jobs for the federal government to help people buy new cars, or is it just clearing parts of the inventory of new cars at dealerships? Aren’t people who have real “clunkers” going to buy new cars at some point anyway, and if so, why should taxpayers foot part of the bill?
