Davis Approves Additional $2 Billion for “Cash for Clunkers” Purchases
In another demonstration of how low health care, fiscal responsibility, and personal freedom are on Congressman Davis’ priority list, he voted yesterday to approve an additional $2 billion to help people who already own cars buy new ones. That amount of money could have bought health insurance for 800,000 people (the population of San Francisco) for one year at the average Illinois individual market rate. Instead, if this measure passes the Senate as well, that money will be gone forever.
The $2 billion will go to the “Cash for Clunkers” program, which rewards buyers with a discount of up to $4,500 for trading in old vehicles for new ones with higher MPG ratings. The program had exhausted its initial $1 billion in funding, which Davis voted for as part of this bill, just days after commencing.
While supporters of the program have claimed it benefits the environment, that claim is only weakly supported by the program’s actual terms. For example, under the plan, a driver who trades in a 16 MPG Hummer for a brand new SUV that gets a marginally better 18 MPG can apparently receive a rebate of up to $3,500. Furthermore, these discounts give personal vehicles an unfair advantage over already disadvantaged mass transit systems such as Chicago’s CTA.
Another cause that doesn’t benefit from this program is that of America’s working poor. Those who don’t own a vehicle, own one that already gets high mileage, or can’t afford to buy a new vehicle even with a rebate, get little or no help under the Cash for Clunkers program.
Sound ridiculous? It’s all in a day’s work, apparently, for Illinois’ 7th District “progressive” Democrat congressman.
Update: A recent report by Edmunds.com has concluded that because so many “cash for clunkers” sales would have happened anyway, the total price to taxpayers for each new car sale created by the program was $24,000.
The Mises Institute has also pointed out that the program’s destruction of used cars contributed to an increase in the cost of living in October.
