Tag: Cash for Clunkers

Obama’s ‘Cash For Clunkers’ Unleashed ‘Environmental Nightmare’

Obama’s ‘Cash For Clunkers’ Unleashed ‘Environmental Nightmare’ – Big Government

In a classic tale illustrating the “law of unintended consequences,” a new report concludes that President Barack Obama’s $3 billion “Cash for Clunkers” taxpayer-funded boondoggle artificially drove car prices up, not down, and unleashed an “environmental nightmare” through shredding, not recycling, many of the 690,000 cars people traded in for an up to $4,500 car credit.

In 2009, Mr. Obama proudly declared that his Cash for Clunkers program, officially known as the Car Allowance Rebate System (CARS), was a stunning success. “There were skeptics who weren’t sure that this ‘Cash for Clunkers’ program would work,” said Mr. Obama. “But I’m happy to report that it has succeeded well beyond our expectations and all expectations, and we’re already seeing a dramatic increase in showroom traffic at local car dealers… So I’m very pleased with the progress that’s been made in the House today on the “Cash for Clunkers” program.”

But as Yahoo News notes, the program’s decision to shred, not recycle, many of the trade-in vehicles unleashed an “environmental nightmare”:

Shredding vehicles results in its own environmental nightmare. For each ton of metal produced by a shredding facility, roughly 500 pounds of “shredding residue” is also produced, which includes polyurethane foams, metal oxides, glass and dirt. All totaled, about 4.5 million tons of that residue is already produced on average every year. Where does it go? Right into a landfill.

E Magazine states recycling just the plastic and metal alone from the CARS scraps would have saved 24 million barrels of oil. While some of the “Clunkers” were truly old, many of the almost 700,000 cars were still in perfectly good condition. In fact, many that qualified for the program were relatively “young,” with fuel efficiencies that rivaled newer cars.

A study conducted by Resources for the Future further underscored the program’s failure economically and environmentally:

Approximately 45 percent of the spending went to consumers who would have purchased a new vehicle anyway. Our results suggest no gain in sales beyond 2009 and hence no meaningful stimulus to the economy. In addition, the program will reduce CO2 emissions by only 9 to 28.4 million tons, implying a cost per ton ranging from $91 to $288 even after accounting for reduced criteria pollutants.

And E – The Environmental Magazine says the Department of Transportation’s declaration that Cash for Clunkers was a success is simply a case of smoke and mirrors:

The Department of Transportation reported that Cash for Clunkers was an environmental success… In general, drivers traded in inefficient SUVs and trucks for more efficient passenger cars. However, it’s quite easy to negate this small difference in gas mileage purely by the fact that people will be more likely to drive a vehicle that takes less money to fill up with gas. It’s an efficiency paradox: as we get more efficient at using energy, the overall cost of energy goes down, but we respond by using more of it. Auto emissions of carbon dioxide are directly proportional to gasoline consumed. With only 690,000 fuel-efficient vehicles purchased and over 250 million cars registered in the U.S., that is a negligible difference in overall greenhouse gas emissions.

As the Washington Post even conceded, Mr. Obama’s Cash for Clunkers scheme was an economic and environmental failure: “So were the naysayers right?” asked the Post. “It seems so.”

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Obama’s Cash for Clunkers program hitting the poor hardest

Again, big government steamrolls the workingguy!

The department of unintended consequences: Cash for Clunkers will impose what amounts to a new tax on the working poor:

Hundreds of thousands of “clunkers” headed for scrappers may cause already rising prices for used cars to head even higher, dealers and market analysts warn.
The popular cash-for-clunkers program, extended by Congress last week with $2 billion more in federal incentives, requires that all the old fuel guzzlers traded in are scrapped – not resold. That means up to 750,000 vehicles will never find their way into the hands of another owner. Many are at the end of their useful lives, but others, with years of life left in them, normally would be resold.

“Those are the cars that lower-income families need,” says Geoff Smartt, owner of Smartt Cars in Caldwell, Idaho.

Used car prices have risen about 5% on average in the last year, says Tom Webb, economist for Manheim Consulting, a branch of a major used car wholesale operation. Fewer new car sales have meant a drop in recent-model trade-ins. Car rental companies also have reduced supply by cutting their fleets. That’s resulted in fewer castoffs for used car lots.

Once more, Democrats are the working man’s worst enemy.

Cash for Clunkers, a clear illustration of just how inept Obama is

Good freaking grief!

Rarely do you encounter a wealth-destroying green measure that literally destroys wealth but this is an exception and therefore a sweet, sweet metaphor for Obamanomics. I think some people are under the impression that C4C is just a trade-in program, where the dealer gets to keep the buyer’s old ride and sell it for parts or to a used-car dealer, etc. Not so. The whole point is to get fuel-inefficient vehicles off the road, which means the engines — the most valuable part — have to be destroyed. The Examiner’s Bill Dupray is horrified at the sheer inefficiency of it all:

The Cash for Clunkers program is stupid for a lot of reasons. Not only is it just another tax-payer bailout of the unions automakers, who can sell more cars at artificially depressed prices so they can keep the doors open. It also screws with the free-market (big surprise there) by pulling forward demand that isn’t there now, only to kill demand over the next 1-2 years. Killing off the clunkers also hurts the used car market, the spare parts market, and the auto repair business. If there aren’t any old cars to buy or fix, those guys are all out of a job.

But one of the most asinine parts of the plan is that they take old cars, many of which were being used as functional day-to-day transportation the day before, and destroy them. A perfectly good and useful machine destroyed for political reasons…

I know people will say that some of these cars were maintenance disasters to own and if the blue book is less that what someone will pay you for it, then there is no point in keeping it. But the Cash for Clunkers program requires that a working vehicle be destroyed. What about giving it to charity, or to your teenager, or to whomever deems the thing more useful than a $4,500 credit on a new car.

This smacks of the asnine “gun buy-back” programs Liberals love so much. It is all about making them feel better. Results? Common sense? Who needs them.

The latest addition to the scrap heap of failed Liberal ideas?

Cash for Clunkers! Well, now, I guess more stimlulus finds can go to this!

The National Endowment for the Arts may be spending some of the money it received from the Recovery and Reinvestment Act to fund nude simulated-sex dances, Saturday night “pervert” revues and the airing of pornographic horror films at art houses in San Francisco.

The NEA was given $80 million of the government’s $787 billion economic stimulus bill to spread around to needy artists nationwide, and most of the money is being spent to help preserve jobs in museums, orchestras, theaters and dance troupes that have been hit hard by the recession.

Look, if they ARE going to spens tax dolars on porn, at least make it good porn! Maybe even an educational video about what attracts RINOS like George “Screw those Southerners” Voinovich.

As a bonus, I offer up a baby picture of Lindsay Graham!