The federal government's cash for clunkers stimulus program is driving the nation's economy at the pace of a NASCAR driver.
Something that works well always can be improved upon, however. I'm no mechanic, but this idea needs a fast overhaul if America is to obtain maximum mileage from the government's economic fuel. Consider:
* Dealers overjoyed by the program's response are overwhelmed by the bureaucratic paperwork and slow program response times required for trade-in approval.
* Consumers who want to participate are not sure from all the fine print whether they qualify.
* Automakers who must decide whether to ramp up volume are unsure how long the program will last.
The federal government should begin the rebuilding process by eliminating the mounds of paperwork required for program approval. Dealerships typically are small businesses focused on sales and service. Dealers don't want to complain too loudly because cash for clunkers has been a boon, but they are stressed-out by bureaucratic demands.
With simplified guidelines stating, for instance, that any vehicle over eight or 10 years old can qualify, gas-mileage and emissions requirements would be met in most instances, and dealers simply would need to verify model year and make a quick rebate.
The clear-and-simple approach also would make cash for clunkers easily understood by all consumers who want to participate.
There are other advantages. Older, less-efficient cars will be destroyed. Consumers will benefit as falling used-car prices stabilize. Manufacturers can begin making cars again.
Such changes will require more federal funding, of course, since demand for clunker trade-ins would be even more robust, but Congress is taking steps. The House has voted to put another $2 billion into the program, with the Senate expected to vote this week.
Unlike other stimulus efforts, this one has fewer detractors, since much of the allocated money will come back into government coffers, while car buyers in need are receiving a big boost.
The government now just has to improve and extend the plan. Those moves will keep America on the fast track to economic recovery.
"Consumers will benefit as falling used-car prices stabilize." HUH??????? When is the last time the public benefited from rising prices? But more to the point, this program is just another corporate welfare program. The latest welfare recipients include names like Tim Kelly, Marshal Mize, Edd Kirby, Herb Adcox, Nelson Bowers, the whole McKamey and Watson gangs and every other franchise dealer once involved in only private business. After this, I care little whether these local dealerships never sell another new car. After all, they are celebrating tonight on money which my children will be required to repay tomorrow. In fact, with that in mind I hope they all fail.
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