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Obama’s Economy In Action!
Data Shows Cash For Clunkers
Was An Epic Debacle

Daily Caller, by Eric Owens

Original Article

Posted By:MissMolly, 8/10/2014 5:26:38 AM

“Cash for Clunkers,” the 2009 Obama administration stimulus program designed to spend $2.85 billion to jumpstart the auto industry, turned out to be a complete disaster — for the auto industry. In the minds of Obama’s team of advisers and economists, the program made total sense, of course. The plan was to dangle a $4,500 credit to persuade car owners to trade in their older automobiles for new cars with better fuel efficiency. It would stimulate an economy then in the midst of a deep recession. As a bonus, it would mean less oil consumption and cleaner-running cars. The law of unintended

      


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Reply 1 - Posted by: Trigger2, 8/10/2014 5:32:09 AM     (No. 9960030)

Since Barry´s objective is to ruin the economy, his program worked perfectly.

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Reply 2 - Posted by: darthmuaddib, 8/10/2014 6:23:26 AM     (No. 9960050)

One other consequence of the program was that the "clunker´s" were destroyed and not sent to auto junkyards for people to use parts from for their cars. Destroyed.

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Reply 3 - Posted by: ocjim, 8/10/2014 6:53:56 AM     (No. 9960071)

I knew the moment they inflicted this madness upon us that we had the Marx Brothers running the economy... Groucho, Chico and Karl.

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Reply 4 - Posted by: Keekng, 8/10/2014 6:54:47 AM     (No. 9960073)

Everyone, other than Zippy and his minions, knew it was a debacle from day one.

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Reply 5 - Posted by: lil dotty, 8/10/2014 7:07:23 AM     (No. 9960091)

Gumbo at his best. The flying monkeys, Nan from Fran on down to the newest, the fainting fan, All goo goo eyed over this brilliantly ridiculous plan. At the time persons outside the country were laughing their heads off. ´They had never heard of anything so crazy" Nan, sat at the table holding a press conference telling her listeners this was the GREATEST idea since sliced bread. In fact, so great, it was requested Congress allocate much more to the stupid program--dummies ran out of money. Congress, being the adults they were said The funds are gone. Don´t remember if they allocated a smaller dollar amount than needed, but they would not throw away the amount of money requested by the group of like-thinkers. Just as borrowing more money to spend and pay down debt, both plans were for the dummies who never actually lived in the business world. At the time when speaking to these ´folks´, the ignorant just wouldn´t/couldn´t understand. They, like Nan, had no clue what stimulus, and welfare checks actually were. Apparently, they have never had to do a balance sheet and the only books they knew to keep would be their own diary.

College graduates? Blah!! What is being taught there these days? Just cause one went to university does not necessarily mean they know everything. Just enough of nothing to get elected to high office.

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Reply 6 - Posted by: mws50, 8/10/2014 8:00:45 AM     (No. 9960152)

Obama has surrounded himself with educated idiots. He likes being amongst people with the same life skills he possesses.

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Reply 7 - Posted by: franq, 8/10/2014 8:02:25 AM     (No. 9960154)

All wealth redistribution plans ultimately fail. This one failed on several levels. Big government doing what it does best. Destruction, waste, and fraud are essential.

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Reply 8 - Posted by: dittohead, 8/10/2014 8:04:32 AM     (No. 9960156)

Not only did it take parts off the market, it also took used cars that could still be driven off the market. These are the type cars kids could afford (or at least those lucky enough to have a job). I just bought my own clunker (little 16 year old Corolla with 145,000 miles)to run back and forth to work - gets 25-30 mpg vs my Escape that was getting about 18 mpg for the same commute. I love my SUV but am enjoying this little clunker, too.

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Reply 9 - Posted by: nonsense, 8/10/2014 8:15:12 AM     (No. 9960172)

Yes, but look what it did for Van Jones´ career. Made him a wunderkin of the American Left and the Obama Regime. ValJar just loves him don´t you know.

This boondoogle arose from some Left Wing academic circle publication. Anyone remember the original source for this folly?

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Reply 10 - Posted by: Tanker76, 8/10/2014 8:51:44 AM     (No. 9960216)

#8 is correct, it took many good solid used cars off the market, making it damn near impossible for me to find one for my wife when her car bit the dust at 200K miles. I refuse to pay these outrageous prices for a new car.

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Reply 11 - Posted by: ocjim, 8/10/2014 8:53:02 AM     (No. 9960218)

What the libs don´t get is that wealth --- unearned, inherited, etc. excepted --- is a measure financial prowess and priority. Give a poor man a good bank balance and you still have a poor man, but now one with unearned wealth still making poor financial decisions, just with more money to play with and waste. Charity, not redistribution, is the minimal, temporary fix for poverty which is, importantly, consistent with human nature. Redistribution appeals to the worst in human nature, a sense of entitlement.

But redistribution will get you more votes.

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Reply 12 - Posted by: stablemoney, 8/10/2014 8:53:38 AM     (No. 9960219)

Obama and the democratic party are incompetent failures and the ruination of this country, but they are looked at by too many as the funny drunk, instead addressing the seriousness of ruination, and firing this bunch.

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Reply 13 - Posted by: ocjim, 8/10/2014 9:08:58 AM     (No. 9960243)

Per wiki...
´´At the end of the program Toyota accounted for 19.4% of sales, followed by General Motors with 17.6%, Ford with 14.4%, Honda with 13.0%, and Nissan with 8.7%. It led to a gain in market share for Japanese and Korean manufacturers at the expense of American car makers, with only Ford not taking a significant hit. Meanwhile, Japan´s own program excluded U.S. cars´´

Edmunds calculated that only 125,000 of the 700,000 program sales were incremental. This makes the program even more fabulously expensive.

While of no importance to the elitists running the show, the usable miles junked on those clunkers was an enormous loss of value to the nation, plus the disruptions to the used car market cited by other poster.

The environmental advantages of the program remain a laughably expensive joke on us all.

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Reply 14 - Posted by: RancherJack, 8/10/2014 9:56:24 AM     (No. 9960289)

The thing to remember is that Barry Soetoro never dreamed up any of this .. he´s a hand puppet for those who pull his strings .. he´s merely the bobble head with a teleprompter ..

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Reply 15 - Posted by: birddog, 8/10/2014 10:34:10 AM     (No. 9960333)

#1 cash for clunkers vehicle? Jeep Grand Cherokee. $4500 was high resale value for many of them at that moment.The bodies were often in decent shape...soo...the engines were destroyed, every used motor on the market bought up and installed then the same cars put back on the market. Used 4.0 engines went from about $700 to several $K in a matter of months. The price of the used GC´s collapsed....(I had two at the time that I wanted to sell, one I needed and engine for first.It took me over a year to find a decent engine for less than 2K, I had to have it shipped from RI to OH, in the meantime market prices dropped nearly 2K)
Today? The price has gone up above the cash for clunkers/previous market level for the same age vehicles. Why? Brokers are buying up every one they can find and shipping hundreds at a time to the Middle East. Jeep GC´s regularly last 300,000 miles +


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Reply 16 - Posted by: MDConservative, 8/10/2014 10:40:13 AM     (No. 9960338)

"Cash for Clunkers" was just another give-away for two "good causes" - the environment and the American economy. Politicians love to give away free stuff - and not just the Democrats. Republicans just put on a sour face while it passes - protesting they had no choice. Who came up with the Medicare expansion into prescription drugs, for example. And who is now trying hard to give away "open borders" access via "immigration reform"?

BTW: The Clunkers legislation passed the House by a vote of 298 to 119; Senate by 91–5...I´d call that fairly bi-partisan.

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Reply 17 - Posted by: craige, 8/10/2014 10:51:46 AM     (No. 9960364)

Another plan aimed at hurting poor people. Reducing the number of cheap cars, increases the price of cheap cars. Poor people end up losing private transportation, and relying on ´public transportation´.

Good for greens, good for liberals, bad for the poor.

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Reply 18 - Posted by: Philipsonh, 8/10/2014 10:58:20 AM     (No. 9960379)

Golly, Ms Molly, I knew that when it occurred, same as all Obama´s other initiatives. He and his advisers belong in the classroom, not in the real World.

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Reply 19 - Posted by: harper, 8/10/2014 4:14:39 PM     (No. 9960685)

Because the car industry has long been a total recycling industry, this half baked policy from the bowels of the academic ghetto did major damage to America. It was the equivalent of paying someone to beat yourself up.

All those useable and recyclable engines killed by the official democrat cocktail were not available to the lofos [at least the ones that didn´t have a Dem gig, thus needing them] that usually purchase such engines from auto recyclers.

Instead they went to China for pennies on the dollar.

Everyone wins...except America.

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Reply 20 - Posted by: ChipThome, 8/10/2014 4:51:11 PM     (No. 9960713)

In my area the majority of CFC purchasers were people secure in their jobs, financially stable and possessed good credit ratings. Those are the very same people who here, take care of and maintain their vehicles, regardless of age. Those people who drive real crap cans, they are not and were not able to purchase a brand new car. So here, the crap cans stayed on the road while the best of older cars and trucks were destroyed by the obama plan. This led to a situation that the quality of lower priced used vehicles, tanked significantly and is still being felt in the industry. Who buys lower priced vehicles? Primarily people who are low income and can not afford to spend more.

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Reply 21 - Posted by: JoniTx, 8/10/2014 5:12:12 PM     (No. 9960721)

However, due to the ´main-stream-media´ most folks in America have no idea of this Epic Debacle!

Not reported/isn´t happening. End of story....and so it goes.



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