Cash for clunkers all about big business?

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Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Cash for clunkers all about big business?

Ok, I know many people disagree with me on many things so can someone please correct me if I'm wrong about this.

Somehow, one way or another, big business, got the government to purchase a 300 dollar car(the clunker) for 4500 dollars and pass the cash off to the big business?

Does everything always revolve around big business?

Ready's picture
Ready
Status: Platinum Member (Offline)
Joined: Dec 30 2008
Posts: 917
Re: Cash for clunkers all about big business?

I'd like to replace my refrigerator to a newer more efficient model. I'm just waiting for "Ca$h for cooling."

The only positive thing you can say about this is that it is actually stimulative right away, not 18 months from now. Even that is a stretch...

Woodman's picture
Woodman
Status: Diamond Member (Offline)
Joined: Sep 26 2008
Posts: 1028
Re: Cash for clunkers all about big business?

Cash for clunkers sure seems just about helping big business (new car makers) and also political popularity, but not at all about engineered solutions toward addressing economic, environmental, and energy issues.  It's only keeping the grand ponzi scheme going for the short term.

Reasons it doesn't help the economy:  Increases government deficit, increases debt burden of those who buy new cars, government debt plus interest must be paid back with future taxes or printing money, no return on investment in a depreciating asset, just moves future purchases forward in time, value of old cars is destroyed but money remains in system = inflation.

Reasons it doesn't help energy or environment:  energy and resources needed to build more new cars, and associated pollution caused by building new cars.  Higher fuel efficiency seems nice, but folks just tend to drive more and use all the energy they can afford.   Will the gas savings offset the energy already imbedded in the production of the old car?

Show me an engineering report that demonstrates net energy, economic, and environmental improvements by this program.

The more effective effort should be to promote a whole new living system that doesn't require as much driving to begin with.

Some viewpoints by others...

http://globaleconomicanalysis.blogspot.com/2009/07/free-money-runs-out-congress-authorizes.html

http://market-ticker.denninger.net/archives/1285-What-A-Waste-Cash-For-Clunkers.html

 

cannotaffordit's picture
cannotaffordit
Status: Gold Member (Offline)
Joined: Jun 12 2008
Posts: 273
Re: Cash for clunkers all about big business?

 Thomas.  In answer to your question, the answer is YES.

ReginaF's picture
ReginaF
Status: Bronze Member (Offline)
Joined: Jan 16 2009
Posts: 93
Re: Cash for clunkers all about big business?

Car Recyclers Betray German Government

It's green, it benefits the economy and it puts cash in the pockets of average Germans. But the German government's "scrapping bonus" stimulus for the automobile industry has apparently also provided a windfall for local conmen. Instead of wrecking old cars, they're selling them abroad.

 

The German government has been paying a cash rebate since Febrary to any citizen who scraps an old car that is at least nine years old and buys a new model. But one group is claiming that between five and 10 percent of the cars intended for the junkyard, have actually been sold outside of Germany instead. It has been described by German media as the "massive scrapping bonus betrayal."

 

 

"Racketeering recyclers are making a good business out of this," Wilfried Albishausen, of the German Union of Criminal Investigators (BDK) labor organization, told the tabloid Bild. His organization claims that up to 50,000 old German cars had been declared wrecked, but were later sold on -- taken either to Eastern European countries or shipped to Africa. Albishausen said that spare parts were also being sold -- for instance the fronts of cars, including the motors, were also being used in other vehicles outside of Germany.

 

http://www.spiegel.de/international/germany/0,1518,640572,00.html

 

and - after all - it had'nt helped the german auto & automotive industrie, they all think, that the "crash" will be in 2010

Best Greetings from Germany

Regina

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