On Tue, 5 May 2009 19:33:46 -0700 (PDT), Too_Many_Tools
wrote:

What is your opinion of this "cash for clunker" approach?

TMT

Obama, lawmakers agree on "cash-for-clunkers" bill
Tue May 5, 3:49 pm ET

WASHINGTON (Reuters) =96 President Barack Obama and Democratic lawmakers
reached agreement on Tuesday on a legislative proposal designed to
stimulate U.S. auto sales, which have fallen to near 30-year lows.

The one-year plan crafted by members of the U.S. House of
Representatives would offer vouchers worth up to $4,500 for owners to
replace their less fuel efficient vehicles for models that get better
gas mileage.
snip
--------
More "free market" in action?

Very much akin to giving low income people cheap cell phones so
they can order pizza and chinese as a cure for hunger.

If everyone makes what the Representatives (c. 175k$/year) and
their staffs make , this *MAY* be a logical approach.
http://www.legistorm.com/member_of_c..._salaries.html
http://www.legistorm.com/browse_by_s...ate_id/CA.html
http://www.legistorm.com/salaries.html

The truth is that most people make no where near that much money,
and a "beater" is all they can afford (and in truth all they
need). In most states an older car pays much less in taxes and
license, and has lower insurance rates. The 4,500$ will
evaporate with the sales tax, property tax, license, insurance,
etc. leaving the "sucker" with sky high long-term [60 moth?] car
payments [unless these too are subsidized]

Note that legislatively getting rid of existing cars to force
their replacement [like Japan] has been a Detroit "wet dream" for
decades. This was attempted during the 70s oil crunch in
California and then again in the late 90s under the disguise of
"environmental protection" and safety.




Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).