Kathy Posner Would Still Drive A Clunker

The Cash For Clunkers program ends Monday (August 24th) and the federal government said the stimulus effort resulted in 489,269 deals valued at more than $2 billion. The Obama administration has declared the program a success because it has revived the country’s ailing auto industry and taken polluting vehicles off the road. I have a few questions about the “true” success of the program.

(1) Since people will probably stop buying cars at this pace once the program ends, what will keep the auto industry revival driving?

(2) The number one car manufacturer that benefited from the program was Toyota with 19.2% of the sales. Foreign cars occupied eight of the 10 spots on the top-selling vehicle list. In fact 58% of all the cars sold were foreign manufactured. How does this help American manufacturers?

(3) Besides car salesmen earning commissions, automobile recyclers, scrap dealers and the paper industry (each transaction generated 10 to 13 pages of documents that need to be submitted to the government), how did the average American benefit from this program?

Let’s see if we can figure out a way for everybody to benefit from a government program.

According to Marilyn Vos Savant ( she holds the record in Guinness for the world’s highest recorded I.Q.) in her “Ask Marilyn” column in Parade magazine the global money supply is about $60 trillion (economists call this figure the M3 value). If everybody on the planet took all their money and threw it in one big pile and then it was equally distributed among every individual in the world (6.8 billion people), we would each have about $9,000. That probably would not help us much in America, but would benefit the 2.4 billion people whose mean income is less than $1000 year and includes people living in India, Indonesia and rural China.

An easy solution came to me in an e-mail forwarded from Blog Follower Jill. It is called the Patriotic Retirement Plan. It is very simple:

There are about 40 million people over the age of 50 in the country’s work force.

The Federal government pays them $1 million apiece in severance pay.

They MUST retire; 40 million new jobs are created.

They MUST buy a new American car; the auto industry crisis is fixed.

They MUST either buy a house or pay off their mortgage, the housing crisis is fixed.

This plan is uncomplicated and straightforward. I guess that is why it won't work. The government only knows how to function if the solution is complex.

Editors Extra: We are not happy with the figures on this program, nor are we happy that we do not benefit, because we live in New York City and most of us take the subway. How about doing a Cash For Televisions or a Cash For My Old Dishes Program? One interesting note, the scrap dealers make no money off this. They are not allowed to take any parts and resell them. They must be destroyed. So this makes it harder to get used parts and the scrap dealers are losing stock to resell. This program is the pits !
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Anonymous said…
I like Marilyn's idea. sounds solid to me.

Both Hoover and FDR had studied and implemented the same concepts regarding the Great Depression. The difference? Hoover put the stimulus money at the TOP believing in the trickle down theory while Roosevelt put the money in programs for the low and middle class.

You would think our current leaders would have learned.