Cash for Clunkers: More subsidies for those who don’t need it.

The Cash for Clunkers program is nothing more than another cash infusion for the auto industry at our expense. The people that can afford new cars are just getting a $4500 credit to get a newer model of car. Those who really need something besides clunkers, those who are driving clunkers because that’s all they can afford are still left out in the cold. It’s not like they are easing credit tightness to allow this program to work.

Scenario 1: Someone living in the middle of the middle class bracket, maybe with a car that’s paid off already but is in otherwise good condition goes to a dealership and gets in on the CFC. You need money done? Not at all!  No problem, in fact with your credit score we will double your cash value and give you $9000 off! Enjoy your new ride, even though we would have approved you without this deal.

Scenario 2: Someone living at the top of the lower class bracket goes to a dealership with a clunker and no cash. With food costs, gas prices everything going up they have nothing to put down. They have bad credit because living at this ‘price point’ ruins your credit.  Sorry, we can’t approve you unless you put down $3000 or more. I know we are getting a good credit from the government, but since you have bad credit we punish you for more of what we know you don’t have. Sorry, you will be left to drive your clunker, hopefully it holds out so you can still get to your job!

Scenario 3: Someone living at the bottom of the bracket, with no job and on every assistance known rolls into a dealership. Well, we can give you the credit and here’s your new car. We have a special program set up for people in your situation. Here’s the car, be careful with it because we know it might be coming back to us soon, and enjoy! Now with your new car maybe you can get out there and get a job now! Otherwise just let everyone else foot the bill for ya!

The people it should help, those needing a new car and that make just enough to keep afloat, cannot use it but will certainly be helpful when their tax money funds those above them new cars and those below them as well. The system is set up to try to force you down to the bottom tier so that you are under their thumb. Unless you are already at the bottom of the barrel or floating (like a turd) on top, you are paying for the perks of everyone above and below. If you have good credit, you get the best interest rates and easy approval. If you have middling to bad credit, you get hit with the highest rates and the worst deals. If you have NO credit or job, there are special programs to get you in the mix (with hidden things that end up making it impossible to get out of.)

So those who don’t need credit get the best deals and the easiest access. Those who need credit can’t get it, or get hugely screwed. Those who don’t deserve credit always seem to find some program to help them.

And they wonder why our gap of haves and have nots is expanding and our economy is suffering. It’s because it’s completely backwards and in the end greed wins the day.

Also this was supposed to be a boost to the auto industry, even after we pumped in HUGE sums of cash for them to keep their doors open. Remember how that went? Many doors shut anyway (cause to leave them open would hurt the bottom line) and many lost their jobs. Now a bunch of the CFC money is going to Toyota and others because American car companies are still making piece of crap gas guzzlers. They cannot spit the Big Oil tit out of their mouth long enough to say to change anything. Nothing changes.

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