GREGG: CASH FOR CLUNKERS IS A WRECK FOR FUTURE GENERATIONS
August 7, 2009
WASHINGTON – U.S. Senator Judd Gregg (R-NH) today commented on the “Cash for Clunkers” proposal which was approved tonight by the Senate by a vote of 60 to 37. This measure adds an additional $2 billion in government spending to the original initiative to subsidize new car purchases.
Senator Gregg stated, “In the past week, the Cash for Clunkers program has been declared a tremendous success. And if the measure of success is how quickly the government can give away taxpayer dollars without any accountability, then yes, the program has been a success. It’s no surprise that consumers are taking the federal government up on their seemingly endless offers of free cash with which to buy new cars. With up to a $4,500 handout – who could blame them? But if you look at the program for what it really is – a massive, multi-billion dollar auto industry bailout that will be paid for by our children and grandchildren to finance the purchase of new cars today – then this program is simply bad policy.
“While the supposed rationale for the program is to stimulate the economy, it is really only accelerating the time frame for new car purchases that would have happened anyway over the next few months, regardless of the program. American taxpayers have already done their part to assist the auto industry by fronting $87 billion in direct federal assistance to bail out GM and Chrysler. It makes no sense that we would now pile on billions more in deficit spending through a program intended to help the auto industry that makes no distinction between paying for a German Volkswagen or an American Ford.
“At a time when our nation’s debt burden already rings in at $11 trillion, and the President’s budget doubles the federal debt in the next five years, and triples it in ten, Congress should be taking actions to ensure each dollar we spend gives us the most bang for our buck. Unfortunately, this $2 billion expansion of the Clunkers program, although falsely represented as a paid-for activity by Democratic Leadership, is really funded through borrowed dollars. Although I tried to ensure that the $2 billion taken out of the stimulus fund to ‘pay for’ this program would not be refunded at a later date and added to the debt for future generations, my colleagues were more interested in a popular political win than fiscal responsibility. This approach is unfortunate and reflects, once again, the massive run up of our national debt that has become the hallmark of this Democratic Congress.
“This additional $2 billion for the Clunkers program, sold as stimulus for today’s economy, is a wreck for future generations of taxpayers who will be forced to pay the bill for today’s new car purchases. This Congress is again pushing flawed policies, throwing good money after bad, and continuing the dangerous spending pattern that is threatening the fiscal health of our nation.”
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