The clunker fiasco

David Hirsayni:

Here's an idea: Let's give $50,000 to anyone looking to upgrade to a brand-spanking-new, environmentally friendly home. All we ask in return is that you burn your previous residence into a heap of smoldering cinder.

That's the concept behind the bizarre "cash for clunkers" program so many people are deeming a success. It's so successful, in fact, that Congress will increase funding for it by 200 percent.

Then again, in Washington, a place where elected officials are astonished -- astonished! -- when a program doling out free cash is popular, success often translates into higher costs and fewer results.

Now, some of you radicals may have an ideological dilemma with a government handing out thousands of dollars to citizens making an average of $57,000 a year so they can upgrade their perfectly serviceable vehicles.
Turns out, though, that by nearly any criterion, including the ones offered up by President Barack Obama, this populist experiment is an unmitigated fiasco.

To begin with, building a new car consumes energy. It is estimated that 6.7 tons of carbon are emitted in the process. So a driver who participates in the "cash for clunkers" program would need to make up for that wickedness. There are about 250 million registered vehicles in the United States. Only a micro-slither of those cars will be traded in -- and a slither of that number could be deemed "clunkers" outside the Beltway.

A survey of car dealerships found a relatively small differential in fuel efficiency between cars traded in and those replacing them. A Reuters analysis concluded -- even with the extended program in place -- "cash for clunkers" would trim U.S. oil consumption by only a quarter of 1 percent.

...

I suppose that my old Ford Ranger I traded in last fall would have been considered a clunker although it still ran good. I did not get $4500 for it but the discount on my new F150 was actually much more than that. It gets about the same gas mileage as the 91 Ranger, but in return I get a more comfortable ride with a vehicle that has greater towing and hauling capacity. If I had waited for this deal, I could not have gotten the vehicle I wanted either.

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