The cash for clunkers program was controversial when it was first announced. The program offers Americans $4,500 to trade in their old cars with poor fuel economy and high emission output for a newer vehicle that gets better fuel economy. At the same time, the program was intended to help the ailing automakers turn some profit. Reuters reports that the Obama administration has announced that the $1 billion allotted to the program is now gone.
Two things: They’re rushing to refund it and… You work hard, you pay taxes, the government takes your taxes and gives money to people looking to trade in their Jeep Liberty on a Lexus. That money goes to the dealer who then pays it back to the government. Seem a bit redundant? As well, the cars can’t be resold. They must be taken apart, crushed, shipped to a sea port, put on a ship, and sent to China for recycling. All of that takes energy –far more than is saved by the 4mpg increase that is provided by the lowest tier of car upgrades. FDR crushed pigs. That didn’t work either.