Congress, it seems, is surprised that free money is popular.
The so-called “cash for clunkers” rebate program for used cars, which was supposed to run through November, already has exhausted the nearly $1 billion available in its first week.
So what does Congress do? It prints more money.
House members Friday overwhelmingly passed a bill that would add another $2 billion to the program, and the Senate will take up the measure next week.
The president’s spokesman, Robert Gibbs, said Friday: “If you were planning on going to buy a car this weekend using this program, the program continues to run. If you meet the requirements of the program, the certificates will be honored.”
We think the program tends to serve as a perk for wealthier buyers and less for those with the real clunkers that are polluting our airways.
However, there’s no denying the program’s success in flooding showrooms with needed customers. It’s great to see excitement for new car sales after months of bad numbers for the struggling auto industry.
But if Congress insists on going forward, it needs to fine-tune the program.
Word is that the Senate will debate tightening the program to increase fuel efficiency requirements. That seems reasonable. We hope senators also consider adding a recycling component, as the present program forces the total destruction of engines when some parts may still be useful.
The program allows owners of cars built in 1983 and later that had a fuel efficiency rating of 18 miles per gallon or less when they were new to trade in their cars for between $3,500 and $4,500. Yet there are plenty of real clunkers older than 1983 — and the current system actually allows almost-new SUVs to be traded in — despite the fact that newer cars pollute less than older models.
Our original concern was that, even with the rebates, many lower-income drivers wouldn’t be able to afford a new car. So it is encouraging to see Sens. Dianne Feinstein, D-Calif., and Susan Collins, R-Maine, saying that they will argue for the extended program to also allow the low-income buyers to purchase fuel-efficient, used cars.
When debated this spring, some lawmakers wanted to attach “buy American” provisions that seemed especially out of line now that Washington owns substantial positions with General Motors and Chrysler.
Thankfully, the current program doesn’t go down that road, and allows buyers to choose from all automakers.
An extension of the program will be costly, and lawmakers ought to find the extra $2 billion in the $787 billion spending bill meant to stimulate the economy. This program appears to be doing just that.
Otherwise, the giveaway will continue to swell the national debt and further extend the burden placed on the next generation.
