The Obama administration's "Cash for Clunkers" program has been
dominating the news lately. This program has some serious problems.
One is that it's easily scammed. Sell your old car, buy a Prius, get
$4500, sell the Prius on CraigsList for $1000.00 off list, buy an
Escalade for, effectively, $3500.00 off.
Secondly, through some weirdness in the mileage ratings, cars older
than 1984 vintage are not actually included in the program. That's
right, in typical Orwellian Obama doublespeak, real clunkers are not
clunkers, but late model cars are. I was especially disheartened to
learn that my very own 2000 Audi A6 Avant is officially considered a
"clunker" by the Obama administration.
Third, the program rewards as little as a 1 or 2 mpg improvement in
mileage. Given manufacturing variations and individual driving style
variations, that is deep in the noise.
Fourth, part of the program involves actually destroying the target
vehicle. Yes, that's right, destroying the vehicle. The process is
very specific: replace the oil with sodium silicate (aka liquid glass)
and run the engine until it overheats and seizes up. Here is how it's
done on a late model Volvo S80 in great condition:
YouTube: Volvo Cash for Clunkers Engine Disabling
Unbelievable that a stunningly beautiful work of engineering is
destroyed for no reason whatsoever. I mean, you can't help but
compare this to burning books, smashing rock'n'roll records, or the
Taliban dynamiting the Buddha statues. Does anybody think for a
moment this is a good thing?
Here's more:
YouTube: Cash for Clunkers: How to destroy an engine
YouTube: Cash for Clunker Engine Stop, Lynch GM Superstore
Just a reminder: Cash for Clunkers Requires Destroying Perfectly Usable Cars
For some more details, check this out:
Jalopnik's Guild To The Cash For Clunkers Bill
The original idea seems to have come from an article by economist Alan
S. Blinder in the New York Times, July 27, 2008, called
"A Modest Proposal: Eco-Friendly Stimulus".
In it he claims that the program "holds the promise of performing a
remarkable public policy trifecta -- stimulating the economy,
improving the environment and reducing income inequality all at the
same time".
I'm calling bullshit on economist Blinder. Yeah, I know he's
got credentials up the yingyang, but this is ridiculous.
First off, the MPG rating on a car has far less environmental impact
than how the owner uses the car. A driver employing a high mileage
car for a lengthy daily commute will contribute far more pollutants
than the driver occasionally hopping around town, even they're using a
Hummer. The type of driving, smooth vs. stop-and-go, also has more
of an impact. As does the driver's personal habits and the route
chosen.
Secondly, the "reducing income inequality" claim (we all know that's
code for socialism, but glossing over that for a moment...) is simply
untrue. Lower income people, if they own a car at all, generally
can't afford a new car, even with a rebate. Also, let's face it,
because of a little thing called supply and demand (Could someone
explain this to Dr. Blinder?) the retail price of new high mileage
cars will likely increase following their demand, making lower mileage
cars more affordable to first time buyers.
Thirdly, the stimulation will mostly boost the economy of Toyota and
Honda, and not GM, Ford or Chrysler. (I forget, are they still made in
this country?)
While I don't have Dr. Blinder's credentials, my own proposal
A Modest Proposal to Improve the National Energy Policy is far
superior, as it will seriously reduce gasoline pollutants, it costs
nothing, and it doesn't involving trashing perfectly good Volvos.
[later addition:]
CNN reports some intersting things here [August 4, 2009,
As Buyers Pull Up, 'Clunkers' Program Goes Into Overdrive]:
But what kinds of vehicles were being turned in?
"We're seeing Dodges, Fords, Tahoes, Suburbans, parked for ages," said
Karl Jones, finance director at Team Toyota in Baton Rouge, Louisiana.
Got that? "Parked for ages" means that the clunkers were not
polluting at all. So in these cases, the Cash for Clunkers program
actually increases pollution. I hadn't considered that situation before.
And...
"Southern California is amazing; people have more than one car here,
so it's not down-on-their-luck people or poor people we're seeing," he
[Mark Near, general sales manager at Bob Smith Toyota & Scion in La
Crescenta, California] said.
Which runs exactly counter to Dr. Blinder's "income inequality" claim.