So, nearly everyone is saying the "cash for clunkers" program is a success. Just because a lot of people are taking advantage of the program does not mean it is a success. There are a lot of things wrong with it.
1) The car dealers often quoted in the news have a lot of experience with rebate/incentive programs. They know such programs do nothing for the long-term sales levels. If anything, such programs reduce future programs by enticing people who would normally buy a new car in a year or two to buy one now. Then, in a year or two, the market is lower because the buyers who would have normally bought then, bought early. The market will return to normal levels or lower when the program ends.
2) When this program ends, people will simply wait for another rebate program before buying a new car. This will further reduce demand for new cars and further weaken our economy.
3) By destroying the cars traded in, the pool of used cars (that poor and young drivers tend to buy) will be reduced. This will make transportation for these groups more expensive in both getting a used car and keeping it in running condition.
4) There is no reason for the program except to get the public to buy the caars the government approves of. There has been no global warming for about 11 years so using man-made global warming to justify this program is a blatent lie.
5) Likewise, there is no shortage of petroleum to make gasoline from. The government should simply get out of the way and let oil companies develope the resources we have right here in our country to help reduce our dependence on foreign oil. From various sounces, we have enough oil right here at home to supply our needs.
6) A government cannot borrow it's way out of debt nor can it spend it's way out of a recession. This prograam puts us deeped in debt. It is funded with either borrowed money or by money printed with nothing to back it up.
7) It sets a bad precident; should the government offer big incentives to people to but new washers, refrigerators, or computers? No, they shouldn't! But with this program being called "successful", where is the reasoning to deny other industries the same type incentive program?
8) As the bail-out of the car companies proved, all this does is put our country further in debt with no good way of getting out. Raising tax rates has been proven to reduce tax receipts and would harm our economy anyway. Lower tax rates would raise more money, but the current administration will not lower rates and with all the money they are spending, even with increased receipt from lower rates, it would take us several decades to pay for their defecits.
For these and other reasons, this is a bad program and I'm glad our Representative voted against extending it. We need more people like Rep. Latta in Washington. We need a senator like him, also; and we'll have a chance next year to elect one.