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The Great American Clunker Scam

Yesterday the House passed a bill that dumps another $4 billion into the auto industry. When is enough, enough?

The move by the House would deepen the federal government’s involvement in the auto industry, only a week after federal officials announced spending another $30 billion in addition to the $19.4 billion already given to GM to cover its losses and operations.

Let’s be real here. The government keeps dumping money into the auto industry, but it is doing nothing to protect jobs:

The number of initial claims in the week ending May 9 rose 32,000 to 637,000. It’s the highest level since mid-April. Economists had been expecting claims to rise. They estimated that about 27,000 Chrysler employees are eligible to file claims in the wake of the company’s bankruptcy filing.

Worse, we have a credit crisis in America because the country and it’s citizens have borrowed themselves into a hole. So, what brilliant plan passes the House? A plan to encourage individuals to try and take on more debt to buy new cars. I fail to see the logic here.

Oh, and for those of you who believe this is all about a creating a greener environment:

While the original cash-for-clunkers proposal had its roots in an environmental initiative, this bill aims to jump-start sales of new cars and trucks, including some that don’t quite meet the average fuel efficiency standards.

So much for that theory. At best, this is a finger in the dike, while the walls come tumbling down.