Tags: cash | for | clunkers

New York Used its Smarts in Junking Cash for Clunkers

Wednesday, 26 Aug 2009 04:07 PM

Thank you. That’s all I have to say to New York. Amidst all of the government handouts that are going around, all of this free money, free candy if you will, someone had the guts to say enough is enough.

The Greater New York Automobile Dealers Association (GNYADA), an industry group that represents auto dealers in the New York Metro area, said that half of its members left the government program Cash for Clunkers before its expiration date. Cash for Clunkers officially expired Monday, Aug. 24, 2009.

Dealerships simply could not afford to offer rebates to customers and then bankroll their businesses on government promises. They found that big government is slow, inefficient, and seldom keeps its promises.

GNYADA President Mark Schienberg said that the dealers in New York have only been reimbursed for about 2 percent of the rebates that they’ve given out as part of the government program.

If that holds true for the rest of the country that means that American auto dealerships have floated a $980 million loan to the Obama administration to pay for the original $1 billion allotted to Cash for Clunkers.

Even worse, Congress extended the program to $3 billion prior to its closing, so that auto dealers can float even more money to the government.

In the weeks since the program started, 700,000 vehicles were sold for over $2.8 billion dollars, according to federal officials. At a 2 percent reimbursement rate, auto dealers, many of them small businesses, have loaned the Obama administration $2.74 billion.

This is outrageous.

Everybody thought that the rich would pay for Obama’s new spending. Now Obama’s programs are making small businesses, many of them family-run, pay $1.76 billion directly out of pocket to the government, with no interest.

The sad thing is, that number will only get bigger. People will demand that the program be reinstituted. Who is the Obama administration to deny expanding a government program?

The administration has already expanded government spending to give us an unprecedented $1.8 trillion annual deficit. So why stop now?

On top of that, the top two cars bought with Cash for Clunker money were, you guessed it, the Toyota Corolla and the Honda Civic. Both are Japanese automobiles.

I’m all for free trade and global marketplaces, but I hardly see the sense in Americans trading in American cars that they own free and clear for Japanese cars they have to get into debt for. We are literally printing money just to send it overseas.

This is unbelievable and the Obama administration doesn’t even see it.

The bigger idea is that large government programs don’t work and ultimately it is the American people who will end up paying for it. Eventually, after years, the government will pay back auto dealers, but where will the government get the money to do that?

That’s right, they will get it from you and me. They will take our hard-earned income and redistribute it, hardly the capitalistic way of doing things.

American businesses, no matter how tough it is, have to find a way to thrive in this economic downtime without government handouts.

Ultimately, government handouts cost us so much more than we can imagine. But we must remember, government handouts and bailouts are not what made this country great. American ingenuity, entrepreneurship, and a pioneer spirit is what made this country great.

There is no challenge too great, no problem too tough, that the American capitalistic spirit cannot triumph over it. So to the auto dealers of New York that said no to the Obama Cash for Clunkers program, I say thank you. You’ve given America an example, one hopefully others will follow.

Get Dan Mangru in your e-mail inbox — Click Here Now

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
DanMangru
Thank you. That’s all I have to say to New York. Amidst all of the government handouts that are going around, all of this free money, free candy if you will, someone had the guts to say enough is enough. The Greater New York Automobile Dealers Association (GNYADA), an...
cash,for,clunkers
620
2009-07-26
Wednesday, 26 Aug 2009 04:07 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved