Blake James
TheFuseJoplin.com Contributor
August 3, 2009
The Fuse Joplin has already covered the CARS aka Cars for Clunkers dilemma that is heating up, however we need to take a closer look at what is actually going on.
July 31st, Congress pushed for an emergency $2 billion bill to ensure that CARS could continue to happen. The $2 billion is coming from the Department of Energy’s loan guarantee that was included in the Stimulus package. The bill will hit the floor this afternoon, it looks as though it should move through the House rather quickly, but could face some trouble in the Senate. Jeb Hensarling (R-Texas) goes in the book saying “Cash for Clunkers is another example of the government picking winners and losers and enshrines us as a bailout nation”. What the left has to do is convince the GOP that the spending is no new money; hopefully this will ease the vote into passage.
CARS has already yielded upwards of 250,000 cars since the start of July and with the new provisions should be continued till September 30th. The goal is to get the gas guzzling cars that Americans are driving now off the road, and replace them with high efficiency cars of the future. New car buyers have the ability to receive tax credits when the trade in their clunker. How much of a rebate you get depends on the positive net change in your miles per gallon; +4-10 mpg lands you with $3,500, whilst 10+ mpg will allow you to pocket the larger $4,500 rebate. You must also meet a minimum of 22 mpg in order to receive the credit. The premise of the credit is to increase overall fuel economy of the cars being driven in America. The reason I see no problem with the trade-off in the D.O.E. spending is that in all reality this could be the first step to a greener America. Fuel economy helps not only your pocketbook, but America as a whole. Higher fuel economy means our oil supply can be extended that much longer for R&D on other forms of energy. Not to mention that the emissions level in newer cars is considerably less than many older models. Overall the CARS initiative seems to be a good thing for America.
As with all good things there must be the dissenters, in this case it’s the dealers that are selling the new cars. The New York Times published a story on July 31st in which a dealer isolated 5 major problems with CARS.
“1. We have not had one application accepted without it being rejected numerous times.
2. We have 9 people at 5 dealerships working full time on this, it should take one person.
3. We have over 100 waiting to be paid and have not been paid on one yet.
4. They changed the rules part way through.
5. It is a mess. “
The dealer goes on to say that the environmental benefits that drive the project, in many instances, is not what American people are thinking about; “Most people, he said, just wanted to get a good deal when they exchanged an old car for a new one.” Should we worry about what Americans are thinking about when buying that new car, or take it in stride and see it as the people propping up a falling industry?
My gut says go for it, and, as my AP Mobile Breaking News text [on his new iPhone!] says, The House does too. The bill was passed 316 in favor and 109 in opposition. The Senate will open up debate on the legislation on August 7th. So stay tuned in folks, this should be an interesting. Maybe you can talk mommy and daddy into that new car after all.
Peace, Love, and the right to be informed.
-Blake James
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