Knee-jerk legislation passed quickly without public hearings or even members reading it creates adverse ramifications to many other aspects of our economy and society and ultimately hurts the American people.
Cash for Clunkers is a great example of why Congress must move slowly and completely think through its actions, allowing for due process of the people’s business.
The thought of stimulating the troubled auto industry had debatable merit. To give a tax credit — leaving hard-earned money in people’s pocket — works. However, to promise an auto dealer a check for $4,500 if they destroy an asset of value, make sure the engine will never work again, ship it to a location for melt down and fill out government forms correctly does not work.
That is, people did trade in cars — most thinking people could have told Congress if you give out free money it will go quickly, so Congress shouldn’t have been amazed that the first billion dollars was gone after four days. But the world hasn’t been made any more “green” through this initiative, the dealers aren’t in any better financial position and the taxpayers are out close to two billion dollars.
The program has done many things, not many of them good:
Anticipation of the program slowed sales prior to its start.
It sold cars and moved inventory.
It removed rehab-able vehicles from the used car market.
It mandates destruction of U.S. assets with some value.
It puts dealers in a bind waiting for millions after their cars have left the lot.
It creates a bureaucratic nightmare of endless paperwork.
It creates more consumer debt.
It sends the wrong message about energy savings.
It takes more energy to transport, destroy and melt down vehicles than it saves.
It falsely stimulates sales and probably will slow them in future months.
It sent Congress into a euphoric frenzy looking for more money to spend.
It made Congress feel good about doing something.
It may not have worked in the long run.
The program could work if:
It repealed the mandate to destroy the better vehicles.
It allowed the dealers to sell rehab-able vehicles.
It sent a check to the dealer for $2,250.
It reduced the paperwork and trusted the dealers.
It provided incentives of $1,000 to buy used cars.
It shipped the good vehicle to third world countries for sale.
Congress had spent time to think it all the way through.
I’m a design-build contractor and have been building passive solar homes for 35 years. I recently re-branded my company “green,” which adds more dimension to saving energy. Energy consumed in manufacturing, transportation and disposal of products counts just as much if not more as the energy consumed when determining energy savings, especially when considering the global effects of energy consumption. Building reuse also counts immensely in the “green building” concept (to reduce the carbon footprint).
Relating to Cash for Clunkers, my company drives 1999 Suburbans and used pickup trucks. Well-maintained, they get 17 miles to a gallon, cost less, eliminate debt, are reused and save salvage costs. The one I drive cost $4,500 and I’ve put 80,000 miles on it in two years.
Cash for Clunkers suggested we trade in perfectly good vehicles to increase gas mileage by five or six miles per gallon, increase our personal debt two to five fold and sell larger vehicles to buy smaller ones, which means Maine families might need two cars to transport their family to go swimming at their grandparents’ camp or get to the soccer game.
The Cash for Clunkers program is a perfect example for Congress and the president to consider when trying to reform health care, one-sixth of our U.S. economy.
Congress — stop playing politics and think it all the way through.
Richard H. Campbell of Orrington is a contractor and former state legislator.