Clear Lake Republicans

Wednesday, August 26, 2009

Only a government bureaucracy could mess up a program designed to give away free money

"Compared to the infinite complexity of healthcare and health-insurance, cash-for-clunkers is kindergarten stuff. You trade in your old car for a new one that gets (slightly) better mileage and the government gives you money - between $3,500 and $4,500. How hard is that?" Too hard for government bureaucrats, it turns out. Transportation Secretary Ray LaHood has boasted that the cash-for-clunkers program provided "a lifeline to the automobile industry, jump starting a major sector of the economy and putting people back to work.'' But look at the deeds, not the words. Last week, cash-for-clunkers ended in a bureaucratic morass of red tape, failed promises and unanticipated costs.

Only a government bureaucracy could mess up a program designed to give away free money.

The government wizards who set up cash-for-clunkers initially budgeted to sell 250,000 cars in three months. The program sold that many in four days. And because the central planners who think they can provide government "competition" to the private health insurance market failed to accurately estimate how many government workers it would take to administer cash-for-clunkers, they had to take employees from the FAA - air traffic controllers, no less - to help manage the demand. And what about the car dealerships the program was supposed to help in the first place? Even though the rebates were supposed to be paid within 10 days, only 7 percent of federal promises under cash-for-clunkers have been paid so far, leaving dealers with millions of dollars in unfunded government promises.

But there's more to the cautionary tale of cash-for-clunkers than just bureaucratic incompetence. This is a case study in what happens when politicians get involved in the marketplace. Despite all the rhetoric of jump starting the auto industry, politicians' priorities are to give free goodies to their constituents. So as far as they're concerned, cash-for-clunkers has been a resounding success. Forget the fact that they're spending money they don't have, or that car dealerships are left holding millions of dollars in empty government promises. They're not concerned with the long-term, just the next election.

So tell us again why should we think bureaucrats and politicians will perform any better with our health care?