It’s incredible what takes place when the government gives people “free money” – they take it. The Car Allowance Rebate System, also known as Cash for Clunkers, program was another smashing success.

The Cash for Clunkers program officially began on July 1 with a budget of $1 billion. The idea behind the program was for car owners to trade in their old “clunkers” and the government would then give them a $3,500 to $4,500 towards a new car. People loved the program so much the $1 billion budget was maxed out in about four days. Not to fear, an extra $2 billion was quickly thrown together to continue the program.

There was certain criterion for these “clunkers” but generally it was pretty broad. One requirement was that the vehicle must be in driving condition. My question is if these vehicles are still in driving condition, don’t they still have value to someone?

According to www.edmunds.com, a popular used automotive resource guide, the Ford Explorer was the most common clunker traded in. I’ve rode in a few Ford Explorers. I think they’re good looking cars. I would drive one, as I assume most would if it was an automobile they desired and could afford. And we’re simply throwing them away?

I don’t have a soft spot for Ford Explorers. My point is by throwing away vehicles like these that are capable of providing the means of transportation for years to come, we are providing a disservice to low-income families. By taking older and cheaper cars off the market, the prices of the used vehicles still around are artificially inflated. Economics 101 – supply and demand.

These “clunkers” still serve a purpose. A kid fresh out of high school, the college kid looking for a dependable but cheap car, or the families struggling to make end’s meet are the people that are getting hurt by this program. While we and the rest of the taxpayers are being billed to misallocate $3 billion dollars.

For example, let’s assume that you pay taxes. A random person in another state trades in his beat up Dodge Caravan for a new Chevrolet Silverado. That was very kind of you to help him buy his new truck! Let’s hope he doesn’t default on his new much higher truck payment.

Some environmentalist would argue that the plan did help put more fuel efficient vehicles on the road. According to the Department of Transportation the fuel efficiency of the “clunkers” being traded in was on average around 16 mpg. The fuel efficiency of those being bought with the government handout was around 25 mpg. That’s an improvement of nine miles per gallon for 250,000 vehicles of the nearly 260 million on the road – 250,000 out of 260,000,000.

A report that appeared in The Washington Times states the program will save 7 million metric tons of C02 over the next decade. Sounds good right? Unfortunately 7 million metric tons is only .04 percent of the total auto emissions expected for the next decade. This also doesn’t take into account the amount of energy used to crush these “clunkers” and to assemble these new vehicles.

I’m not sure if nine miles per gallon and .04 percent of CO2 auto emissions over the next decade justifies $3 billion dollars and a regressive program that ultimately hurts lower income individuals.

President Barack Obama said in a recent interview that the program has been “successful beyond anybody’s imagination.” Unless, by successful he means people took money handed to them, I politely disagree.

Brett Mize/The Bulletin

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