by Wayne Douma

Created on: August 24, 2009   Last Updated: August 27, 2009

The cash for clunkers program has caused a rise in auto sales in recent months, but at a high cost to the American taxpayers. The original plan had its skeptics, but passed anyway, and then three weeks later there was a $2 billion dollar infusion into the cash for clunkers program. Here are some major thoughts on the program.

- It was not a cost effective model: The government infused round two of the cash for clunkers program with $2 billion dollars, and it will cost taxpayers $3 billion dollars. Something just seems wrong with that.

- Who is getting these "new cars": The CARS program gives $3500 to $4500 dollars to a buyer for trading in their older vehicle. The program requires a new car obtained to garner higher fuel mileage then the old clunker of only 4mpg. In that sense the environmentalists are angry, because this program really does not help their cause.

Also, a large majority of people out there driving these "clunkers" are working middle and lower class Americans. Many of these Americans already have household bills to pay and children to care for. These people who could most benefit from getting a newer car cannot, because the new vehicle purchased must be a 2009 or 2010 model. (Even with the $4500 credit on the new car, there is still new car payments to then worry about). If one can get a used 2006 vehicle that doubles their current fuel mileage then why not let them get one of those instead?

- The car dealerships: A lot of criticism of the program has come from people working at these car dealers across America. The government is lagging on sending the funds out to the dealers, and much criticism has been given of the government website for the program. It has been stated that the site is constantly down and not running up to standards.

- Auto sales: The current auto crisis is being faced by American automakers in Detroit. Ford, General Motors, and Chrysler companies are the one's that really need to be selling cars. However, of the top 5 sold cars under the cash for clunkers program only one, the Ford Focus, is on the list. The other 4 are all Toyota and Honda, foreign name brand cars. This program should have been regulated from the start to include only American automobiles to be purchased, in my opinion.

- The political rollback: This program was one of Barack Obama's plans that was passed through Congress and signed into legislation. Now that it has proven mostly to be a failure, he has nowhere to place the blame (cannot blame George W Bush for the failed cash for clunkers program).

Also, a lot of critics of Obama's health care reform ideas are using the cash for clunkers as criticism. Many politicians have stated, "If the government cannot run a cash for clunkers program, how can we expect them to run health care." It is a true statement of criticism! How can Americans put hopes in the government to get health care right when they cannot even get the correct funds and efficiently run a program to sell cars?

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