Cash For Clunkers, Schiff For Senate

As a matter of policy, the more I hear about the cash for clunkers program the crazier it seems. Peter Schiff discussed the program on YouTube. He pointed out how crazy it is that we are destroying products that have economic value in the name of stimulating the economy. Young people, poor people, and charities could derive a benefit from these cars. Schiff also pointed out that while people own their clunkers free and clear they are being encouraged to go into debt to buy a new car. Debt was a major cause of the financial crisis.

Another justification of the cash for clunkers program is the environmental benefits of getting inefficient cars off the road. A Cato Institute video pointed out that if we want to discourage greenhouse gas emissions we could simply increase taxes on gasoline. Instead we are destroying cars to force people to buy new ones. Of course they aren’t all American cars that are being bought to replace the clunkers. A Toyota dealer discussed the amount of clunkers being destroyed and the sad reduction in charitable donations because of the program. To me all this adds up to an illogical federal program. I was encouraged to see Peter Schiff considering a run for Senate in Connecticut. Let’s hope he wins.