President Obama and his fellow democrats believe that the government can take money from one, transfer it to another, and spur economic growth. Do they know it will destroy the economy, and the only way to save it will be more government intervention?That sort of economic policy has never ended well anywhere it’s been tried. But they’re true believers so they will keep on trying.
Just take the Cash for Clunkers program. What was it, about a billion out of a trillion dollar stimulus plan? The only stimulus from the trillion dollar stimulus bill came from Cash for Clunkers. Which is why it ran out of money after four days. Rather than end this ill-advised program that will only put more Americans in debt during a recession, the democrats have doubled down.
The House has voted to rush an additional $2 billion into the popular but financially strapped “cash for clunkers” car purchase program.
The bill was approved on a vote of 316-109. House members acted within hours of learning from Transportation Secretary Ray LaHood that the program was running out of money.
Called the Car Allowance Rebate System, or CARS, the program is designed to help the economy and the environment by spurring new car sales. Car owners can receive federal subsidies of up to $4,500 for trading in their old cars for new ones that achieve significantly higher gas mileage.
House Majority Leader Steny Hoyer said the new money for the program would come from funds approved earlier in the year as part of an economic stimulus bill.
If you want to know just how ridiculous the whole Cash for Clunkers bill is, read this from Heritage. And that’s before they knew another $2 billion was going to be printed for this ridiculous program.
What would have happened if they simply reduced taxes for you and me? Oh, that’s right, that would have put more money in our pockets. Perish the thought! We can’t have Americans deciding their own fate!
Just imagine being totally broke. The only thing left is to take out a second mortgage or home equity line on your home. For a month or two things will seem okay when you have that extra money. But what the heck are you going to do when the money runs out and the bill comes due? That’s where the American economy is right now. We’ve just taken out a huge equity loan and are enjoying it. But soon the bill will come due. What then?