When will the government stop handing out money for cars? Should Congress buy everyone a new car? A Washington Post editorial asks these questions:
ABOUT A MONTH ago, we ventured a prediction about the federal government’s “Cash for Clunkers” program, which offers motorists up to $4,500 to trade in their old cars for new, more fuel-efficient models: “When the program’s initial round disappoints, as seems likely, pressure will mount to expand it.” Sure enough, Friday, with car dealers and consumers complaining because the first $1 billion in car-buying aid was about to run out after four days, the House of Representatives approved another $2 billion. The issue may move to the Senate this week.
Admittedly, we expected the program to be undersubscribed, not oversubscribed. But the latest turn of events hardly proves the program a “success,” as its proponents now claim. It merely shows that Washington could bribe more people into purchasing new cars than many thought possible. And the essential flaw of “Cash for Clunkers” has been confirmed: Once Congress starts passing out free money for cars, it’s hard to stop. Will the next $2 billion be the last? Or will car dealers and their customers demand even more when it runs out? Maybe the government should just buy everyone a new car. That would certainly “stimulate demand.” The washing-machine industry could use a boost, too; older models waste water and energy. So how about cash from Uncle Sam for washer upgrades?