No 'cash for clunkers'

The "cash for clunkers" proposals to pay Americans as much as $4,500 to buy new cars and trucks is a questionable use of the public's money.

There are several issues of fairness here. This is not a subsidy for all Americans, or all taxpayers. It's a subsidy only for those who buy approved cars and trucks in the plan year.

Few of the buyers will be poor, because the poor are less likely to buy new cars and trucks, instead opting for used cars. But the old cars the government buys under these programs will not be put on the used-car market. They will be scrapped.

The rebates won't be for just any cars or trucks. They will be for cars and trucks that have somewhat better gas mileage than the buyer's old vehicle. There is an environmental reason to do it that way, but there are also side effects. A person who owns an extreme gas guzzler has the most options to get the maximum payment, and a person who has already bought a fuel-efficient vehicle such as a Toyota Prius or Honda Insight has the fewest.

The aim of the program is to stimulate the U.S. economy. But under the World Trade Organization agreement, each country promises to treat other members' products under the same rules as its own. It's generally a good rule, but it does mean any U.S. taxpayer subsidies will have to be available for the purchase of imports, which is a questionable thing.

Finally, all this is happening when our state is laying off teachers and pushing 40,000 people off the Basic Health Plan. The reason is money. It will be difficult to explain to people why there is not enough money for teachers and medicine but that government cash can be had if they buy themselves a new truck or car.