Posted by
KidzTested on Friday, August 07, 2009 4:28:23 PM
Recently CSPAN made me laugh - as the extension for auto rebates was being discussed on the floor one representative said basically "if you think that's a great idea, well hell, why not cash for cluckers we can pay the public to eat chicken". Why not support the farmer and the millions in rural America within farm related industries? We would even be giving a boost to the trucking industry that moves all that produce and their support industry.
Well as innovative and funny as that may sound it would actually go farther in supporting Americans that need work than the venerated "Cash for Clunkers" ideology. I have to admit if I was even thinking about a new car or wishing I could get a new one I would be yelling "Whooppee!! - free money". But is it free? We currently, and the world, face a recession the likes of which it has never been seen. With the jobless rates steadily climbing and unemployment rapidly running out of money is it really the time to buy a new car?
Historians say if we dont learn from history we are doomed to repeat it. Didn't Wall Street, the Banking Industry and the U.S. Treasury just pull back from the brink of a potential catastrophic depression just months ago? Wasn't this all boiled down to the American Consumer being conned into buying things that they really couldn't afford from houses to SUV's all based on credit? Isn't that the first part of the acronym "CDE" - credit?
Now I don't want to be the wet blanket at the party so "Free money for cars - Whooppee!! - free money". However I must advise caution. We look at this program and according to the numbers its adding a boost to the auto industry and I say of course, it's free money. But your temporary boost will bring a prolonged lull that may be worse than if we had left the auto industry alone. Why - because those that may have bought cars over the next few months have now have probably already bought them and those that feel its cheaper to stick with the car they have paid off instead of making payments wont buy anyway. Then of course we have the added bonus of the consumer base that are "Sale!!!" oriented and they will wait and wait for the administration to do it again. With the Holidays looming, winter ahead and increasing unemployment did we help or hurt ourselves by putting at least 250,000 Americans (and counting) into deaper debt?
We teach our children when their young to save their pennies to buy the things they want, when did we stop taking our own advice? This administration has spent over a Trillion dollars of money it doesnt have and it keeps spending. Wouldn't it be interesting to know how many of the car buyers participating in "Cash for Clunkers" were currently recieving Government assistance through unemployment, disability, etc. Not because I think ill of them but more because it reminds me of borrowing from one credit card to pay another.
As Americans it's hard to fathom what a Trillion Dollars of debt or 54 Billion Dollars of debt is because its staggering. It's as if America the consumer being maxed out on its credit cards and unemployed asked the bank to lend it the money for a new house and a new car. We know we can't afford it, but what the heck, in for a penny in for a pound - right?
Wrong!! We need to start taking the elementary advice we give our children - we give it to our children because its sound advice. If you want it save for it, and if you can't afford it don't buy it.
-KidzTested, mother and father approved.