Free Markets, Free People

Revitalizing GM

The government seems to be working on a cunning plan to bring GM back to profitability.

This ought to do it.

With auto sales in the doldrums, the House was considering a plan Tuesday to provide vouchers of up to $4,500 for consumers who turn in their gas-guzzling cars and trucks for more fuel-efficient vehicles.

The House proposal, set for a floor vote Tuesday, was aimed at stimulating car sales during a bleak period for the auto industry and increasing the nation’s fleet of cars that get more miles to the gallon…

Separately, House and Senate appropriators were discussing providing $1 billion to a supplemental war funding bill for the “cash for clunkers” program, which aims to generate about 1 million new auto sales. Since the yearlong vehicle program is expected to cost $4 billion, lawmakers would attempt to find the additional money later this year.

Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the window sticker.

So, now we’ve got a car company, and next we’ll be buying cars for our neighbors.

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20 Responses to Revitalizing GM

  • Separately, House and Senate appropriators were discussing providing $1 billion to a supplemental war funding bill for the “cash for clunkers” program, which aims to generate about 1 million new auto sales. [emphasis mine - dj505]

    The question is not, “Why the Congress has such a low rating?”

    It’s, “Why there isn’t a member of Congress dangling from every lamppost in DC?”

    Bah.

  • Can i use it to buy a ford?

  • So……I can buy a PoS 1974 rustbucket that has been in the back yard for ten years and trailer it to the lot and recieve a $4500 voucher?

    Can I combine them? Six PoS vouchers would get a pretty good ride…if you like the new GM Yugo GLC modle.

    • Wow, southern rednecks could be rich if they trade in all the wrecks in their backyards.  :)

      Thar’s gold in dem there yards!!

      • If southroners have more junk cars in their yards than northerners, it is only because they rust faster up north.

  • Time to buy a Honda.

    • Or another one (my sixth in 23 years)! :~)

      Last Detroit POS was a 1977 Chevy.

      NOt all, but overwhelmingly, those I’ve known who said they loved their Big-3 buckets must have been easily satisfied as their cars were maintenance hogs.

      • You know, I think GM may have stopped making the Chevelle and a few other 1970′s designs as well.  Crazy, I know. 

  • I’m glad the government isn’t going to be running the auto industry.  Dodged that bullet!

  • You know, if they had put the voucher program into the “stimulus’ bill, maybe, just maybe, neither GM or Chrysler would have had to go into bankruptcy.

    • Or maybe the Tooth Fairy could sprinkle fairy dust all around Michigan…

  • Neo,

    The stimulus can’t include tax cuts or vouchers!

    Only spending. Only spending works. And no defense spending, either.  Its best to spend stuff on white elephants like inner city auditoriums and such that will require continued losses for years to come.

    • Its best to spend stuff on white elephants like inner city auditoriums and such that will require continued losses for years to come.

      1) Constituencies
      2) Your average military-type is not so easily bribed (Think: hookers).

      Ah, the “Parliament of Whores”! And as PJ O’Rourke noted, “…the whores are us!”.

  • “So……I can buy a PoS 1974 rustbucket that has been in the back yard for ten years and trailer it to the lot and recieve a $4500 voucher?”

    Yes and no. Yes you can buy a PoS to turn in, BUT, you have to register it (and I think insure it) for some time prior to turning the PoS in.

  • There is going to be soooooo much incredible abuse of this program. Politicians in congress better think hard before they vote for this one, it will be a congress killer in a few years when used by the opposition.

    • I wish I could agree, but I’m afraid that I’ve lost most of my confidence in my fellow citizens.  Congress has been FOR DECADES been wasting our money in ways that, if people thought about it for more than five seconds, would lead them to be SLAVERING to vote the bums out.  But either (A) nobody thinks about it or (B) throwing Rufus Foghorn out will lead to Lester Twiddle taking his place, which would be even worse (and, anyway, Foghorn helped Aunt Sally get her Social Security check, so he’s gold!).

      Congress has a 90%+ reelection rate.  That’s not likely to change.  The only thing that’s going to change is the size of our paychecks: they’ll get smaller and smaller as that pack of thieves thinks of new ways to waste our money.

      For the children, of course.

  • I just thought of something else, I wonder how many old clunkers will be brought up from Mexico and given a fake title and liscense.

    They won’t check very hard anyway. You can get lot’s of vouchers and then sell them. Given the governments ability to police things like social security numbers fraud I would say it is a high probability.