There are currently 15 million people in the U.S. who are unemployed and 10% of them (1.5 million) are facing an immediate end to their unemployment insurance benefits. The stimulus bill could have put a lot of those people back to work if the money had been given to city mayors across the country. Instead, the money was given to governors who immediately played politics with the money. For example, high speed rail transport may be a good idea, but it will be years and years before it creates any jobs.
But the dumbest idea to come from Washington lately is the Cash for Clunkers program. We talked about the inappropriateness of the program earlier, but a whole new problem has emerged. The first $1 Billion Congress appropriated for the program was gone in a couple of weeks. Now the House of Representatives has voted another $2 Billion to extend it.
When will the hand out stop? What will happen next year when new car sales are low because the Cash for Clunkers program simply shifted demand forward a year?
If car owners can get a bail out gift, why not washing machine owners? We could get rid of old washing machines and replace them with new machines that conserve water and electricity. Wouldn't that be a good idea? What is your good idea for the next bail out?
And let's be clear about this; Cash for Clunkers is not about stimulating the economy, creating jobs, or anything actually important for the economy-it simply about clearing the car lots of car dealers across the country.
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