NT-Auto Clunkers Program Suspended (or maybe not)

[JohnH]

Today's news reports that the program to help people buy more fuel efficient cars is being suspended, then maybe it isn't, or maybe it is - we just don't know right now. What is clear is that they somehow failed to either 1) predict demand or 2) estimate the total amount needed to keep the program running for a reasonable period of time. This type of shoot-from-the-hip legislation is at best incompetent and at worst deceptive.

And these are the people who want to take over health care administration? I can envison the day when I develop a heart problem and the bureaucrat assigned to interview me on my mandatory end-of-life counseling says "Sorry, we failed to predict how many pacemakers we needed, so you'll just have to wait until the next budget year to get yours. Good luck."

[kcjenkins]

Or, depending on your age at the time, says "Sorry, but you are not eligible for any life-extending procedures. It's time you got out of the way, you've had your share of time."

The sad thing is that it's going to end up costing some auto dealers big bucks, because they already gave the customers the money, and now may be told, "Sorry, no money left, you're screwed."

[BulldogTom]

I got mine. Did it saturday. The salesman told me that they did the math, and if every car dealer participated, they could each sell 12 cars under the program. The dealer I bought from did 60. Another dealer I looked at had 40 done before the program became fully active on July 23.

If the numbers are correct, the 1 billion will fund about 250K car sales. The US is on a pace to sell 9-10 million cars this year (down from the 15 million average). At 9.5 million sales, the car companies are selling about 183K cars a week. That means this program spurred 1-2 weeks of additional sales. That should clean up some inventory, but it won't be enough to add another shift at the car manufacturer's plants.

The news last night said the government would honor every sale that was consumated by midnight last night.

What I thought was really interesting was that the Obama administration was signalling that they would extend the program. How are they going to do this when the CONSTITUTION says only Congress may authorize the spending of money. This guy needs to figure out that he is not a ruler, but a servant to the people. He can't do what ever he wants just because he sits in the White House.

Tom

Lodi, CA

[jainen]

>>the Obama administration was signalling that they would extend the program<<

In my observation, President Obama is aware of the mechanics for getting his agenda approved. "Signalling" is not exactly a specific promise, nor is "extend" a description of exactly what a new law would cover. Still, I understand your worry that our new president might be like our last one, doing whatever he likes whether or not Congress agrees or even knows about it.

[JohnH]

Based on what I've seen so far, I'd exchange Obama for the last one without a moment's hesitation. Whatever you may think of Bush, excusing Obama's blunders by comparing him to Bush or anybody else just won't cut it. But if you insisnt on omparing Obama to another president, I'm still inclined to put him in the category of our worst president of my lifetime - Jimmy Carter. This administration is definitely shaping up to be the second Carter term (as predicted).

[kcjenkins]

I think this thread is going to be just too political, and not at all tax related, so I'm going to close it now. Both sides have been expressed, lets leave it at that.