CNBC'S PHIL LEBEAU MISSES IT ON "CA$H FOR CLUNKER$"

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CNBC's Phil Lebeau claims that "Cash for Clunkers" is a "clunker."

He laments in his "Behind the Wheel" blog that:

This "Cash for Clunkers" bill is evolving into one of those pieces of legislation that politicians will crow about as a sign of progress, but the impact could be limited.

His criticism is that the bill doesn't target enough old cars and trucks for government purchase and destruction.

With all due respect, Mr. Lebeau has completely missed it again.

Cash for Clunkers is a "clunker" but for vastly different reasons. It is another repudiation of free markets, It will greatly damage grassroots motorsports, "hot rodding" and the car collecting hobbies. It will lead to signficant losses from our automotive heritage. It is another bailout disguised as welfare. See,
http://speedzzter.blogspot.com/search/label/%22Cash%20for%20Clunkers%22

Under the House-passed version of the CARS Act, virtually any vehicle with a V8 engine built after 1984 and before 2000 is potentially at risk of being crushed if its been in the hands of the same greedy, welfare-loving owner for a year and has insurance. Most certainly, the few V8-powered vehicles built after 2000 probably have enough “trade in” value left to exceed the $3,500-$4,500 government bid.


As Truth With Speedzzter has previously pointed out, many of the vehicles at risk are seldom-driven special interest vehicles at the bottom of the depreciation cycle. Under normal, market-based attrition rates these would be of interest to collectors and enthusiasts as candidates for entry-level special interest use, future restoration, modification, or as powertrain donors for grassroots motorsports and "street rodding" activities.

Moreover, Truth With Speedzzter has correctly observed that:

Cash for Clunkers amounts to a declaration of war against American collector vehicles and grassroots motorsports, funded by money borrowed from the Communist Chinese and others. It will harm hundreds of thousands of small businesses that depend on affordable used vehicles.

The car-hating appliance motorists, radical greens, and the anti-collector vehicle elements in the U.A.W. and the Detroit 3 have outmanuvered grassroots automotive interests, automotive collectors, salvage dealers, and the aftermarket. These anti-free market forces want to tap the federal treasury to subsidize their meddling in the used vehicle and used auto parts markets. Such meddling will drive up prices, balloon the federal deficit, and will have minimal effects on the environment. The gutless lapdogs of the anti-collector/anti-free market special interests in Congress and the Obama Administration are all too willing to destroy a large part of our automotive heritage.

And our children and grandchildren will get a double bill for it. First, they will be deprived of hundreds of thousands of collectible vintage vehicles and parts vehicles. What vehicles and parts that survive the onslaught will be much more scarce and expensive. Second, our children and grandchildren will get stuck with the bill for the billions in bailout cash laundered through the "ObamaCa$h For Clunker$" program to the big automobile manufacturers.

Had we had a "Cash for Clunkers" program in the 1970s or early 1980s, a whole generation of Camaros, GTOs, Mustangs, Chargers, Firebirds, and other milestone models from the 1950s and 1960s would have been lost. The restoration and parts businesses that grew up around these vintage vehicles in the late 1980s and early 1990s would likely have never become viable. Hundreds of thousands of collector vehicles that have been restored and are now the "stars" of Barrett-Jackson and other "musclecar" events would never have been preserved for future generations.

Had we had a "Cash For Clunkers" program during or after World War II, many more of the "true classics" from the first decades of motoring would have been senslessly destroyed. As it was, WWII scrap drives claimed far too many of these beautiful, restorable classics when they were just commonly viewed as old "clunkers."

Had we had a "Cash for Clunkers" program in the 1950s or 1960s, most of the vehicles that are the basis for today's street rods would have been flattened. This would have placed enormous additional demand "pressure" on the surviving originals (too many of which would have been "cut up" by later generations to make hot rods) and thus would have significantly harmed the potential collectors of original 1930s popular cars.

Whole chapters of our American automotive heritiage would have been placed at risk had prior generations adopted the "Cash for Clunkers" approach.

Much like the misguided, anti-preservationist, government-funded "Urban Renewal" policies of the 1960s decimated much of America's irreplaceable archetectural heritage, Cash for Clunkers will decimate a meaningful chapter of our automotive history.

Cash for clunkers is a "clunker" for sure.