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Home‘Cash for Clunkers’ or ‘Ask Us No Questions, We’ll Tell You No Lies’
Posted by Larry Doyle on August 4th, 2009 3:31 PM |
Instinctively, I am very suspicious of how $1 billion was spent on the ‘Cash for Clunkers’ program within such a short time frame. As such, is it unreasonable to ask for an audit of this program prior to allocating more funds? Who is to say that some degree of misappropriation, if not outright fraud, has occurred?
Whose money is being allocated? Yours and mine. I want an accounting. Who is supposed to protect our interests? Our elected representatives. They must be held accountable.
Perhaps there has been no fraud or misappropriation in the allocation of these funds. Perhaps administratively this program is overmatched by demand. If so, those administering the funds should swallow their pride and say as much.
I find it totally unacceptable, though, that upon request those in Washington overseeing this program can not give a timely and accurate accounting. As the Associated Press reports, Obama Administration Withhold Data on Clunkers:
The Obama administration is refusing to quickly release government records on its “cash-for-clunkers” rebate program that would substantiate — or undercut — White House claims of the program’s success, even as the president presses the Senate for a quick vote for $2 billion to boost car sales.
The Transportation Department said it will provide the data as soon as possible but did not specify a time frame or promise release of the data before the Senate votes whether to spend $2 billion more on the program.
We deserve so much better!!
LD
‘Cash for Clunkers’ Comments and Questions
Posted by Larry Doyle on July 31st, 2009 2:51 PM |
Uncle Sam just spent $1 billion via the “Cash for Clunkers” program over a 4 day time frame. Given the speed of that burn rate, The Wall Street Journal reports, House Votes to Extend ‘Clunkers’ Program.
A few questions and comments:
1. The National Highway Traffic Safety Administration is overseeing the disbursement of these funds. Think there may be a chance of some kickbacks or fraud going on here? Who is checking?
2. Assuming the average list price of the fuel efficient vehicles being sold is $20k, the subsidy of upwards of $4500 is approximately a 20% discount. Is this a true reflection of latent demand or partially a reflection of consumers responding to a gift?
3. What does this program do to the used car market? If I am in the market for a used car, my bid just went down at least 10% if not more.
4. How does this program affect the less fuel efficient car market? Does it strip demand away from that segment?
5. If there is such demand for the Cash for Clunkers program, should there be further restrictions on who may be able to benefit from this program going forward?
6. Given the speed with which the initial $1 billion was utilized, do you think there is a chance car dealers are working other deals with customers?
Not to be overly cynical, but as an industry car dealers do not exactly enjoy the best reputation. As such, while Congress can approve more funds, I would like to see a thorough audit of this program prior to the actual allocation of those funds.
Thoughts and comments welcome.
LD
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Posted in Economic Stimulus, Economy, General | 16 Comments »