Free Markets, Free People

TARP, Winners and Losers and the Constitution

So far my favorite (yes I’m being sarcastic here) government program to date has been the “clunkers for dollars” scam. We’re suffering from overspending and over-extended credit and the government puts together a program in which it tries to entice people with old, but probably paid off cars to go into debt for a new one by giving them $4,500 dollars of your money to buy a more fuel efficient model.


But I have to say, this one is also a great (sarcasm again) program as well:

It can be difficult to keep straight all the billions going to auto companies. But today the Department of Energy is reportedly set to announce that it will begin doling out sums from a $25 billion loan program for the development of fuel-efficient cars. The money comes from a bill passed last September and signed by President Bush and is totally separate from the TARP.

Among the first recipients are Ford, Nissan and Tesla, the small electric car company. The amounts will be announced today, but Ford has requested $5 billion. Nissan is getting the money to build a battery-electric car in its Tennessee plant.

A few points – one, does anyone hear the public clamoring for electric cars out there? They may be, but I’ve sure missed it. Why in the world is my money going to these companies to build something I’m not asking for and really don’t want – especially given the stage the technology is in right now. Yup, its government picking winners and losers again and we know how that seems to always turn out.

Two – although I’m completely against this, it is obvious it is going to happen, so I have to ask, why are we subsidizing a foreign auto maker with my money?

Three – and I know this is a completely silly question, but would some Constitutional scholar out there point me to the part of said document that makes this all kosher?



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8 Responses to TARP, Winners and Losers and the Constitution

  • “would some Constitutional scholar out there point me to the part of said document that makes this all kosher?”

    Section 8 – Powers of Congress

    The Congress shall have Power…

    It a living document you know, so everything after that is now considered null and void. ;P

  • Where is all the electricity for the electric cars going to come from?  We aren’t building any significant more capacity into the generation/transmission systems  that I can see.  Hydro power has been mostly 100% developed.  Any remaining potential appears to be politically impossible to build.  Coal has been named to be to warming.  Nuclear still doesn’t seem to have enough political backing.  Solar won’t help when cars are being charged overnight.  And the wind still doesn’t supply enough baseline generation.

  • Where is all the electricity for the electric cars going to come from?”
    Please, this has been covered quite a bit on some other highly scientific blogs.  The electricity comes from the rear-end emissions of unicorns.  Combined with fairy dust this mixture packs quite a punch.  As a side benefit, the unicorns also “produce” skittles for a fun snack.

  • “It a living document you know”

    Give the administration some time, and they’ll fix that.

  • “electric cars” don’t run on electricity produced by fairies, they run on 47% coal, 21% nuclear, 20% natural gas, 6% hydro,  3.5% renewables and 1% petroleum.

  • Unicorns!?  Obama has been President for over 5 months now, and I still don’t have MY unicorn.  It was the change I hoped for!