Dave's thoughts on Cash for Clunkers

Dave's Thoughts on "Cash for Clunkers"


With all the buzz about Cash for Clunkers, it’s easy to think that it was a great way for people to get a better set of wheels. But was it really? No way! Cash for Clunkers was simply a way for broke people to buy cars that they really couldn't afford. It was a bad idea on multiple levels. But before digging into that, let’s take a little history lesson.

About a decade ago, a fair housing program was started, called a sub-prime lending market. The idea behind it was that everyone “needed” to own a home—including broke people. The government decided to start a program to reinvest in communities, which allowed pretty much anyone to borrow money to buy a house. Lending companies charged high interest rates, causing already struggling families to go even further into debt.

Basically, this was a program designed to encourage broke people to buy houses. Most people didn’t even know it existed until it unraveled and became the number-one cause of our recent recession. The government took those stupid loans back and securitized them, which created the financial mess last fall. Helping broke people buy houses didn’t turn out to be a great government program. Guess what? Helping broke people buy brand-new cars—and now home appliances—will turn out just as bad.

The Cash for Clunkers program was designed exactly for people who should not take advantage of the program. You trade your $2,000 clunker in for a brand-new, shiny $20,000 car, and the only way you can afford it is with a high-interest payment. That just means you really couldn’t afford it to begin with. Doesn’t this sound like the sub-prime mortgage problem all over again?

When you drive that new car off the lot, you’re immediately going to lose $4,500. The worst car accidents happen on the showroom floor. New cars go down in value like a rock. The government thinks it’s going to save the American auto industry by putting broke people into cars they can’t pay for. It’s going to come back to bite them—and the rest of us—in the form of taxes galore.

Another bad thing about this program is that we, the taxpayers, are paying for the new cars! It’s morally wrong of the government to take money away from us—against our will—in the form of taxes and give that money to someone else to buy a stupid car they can’t afford in the first place! This is theft, plain and simple.

Cash for Clunkers is a program that redistributes wealth in the name of the environment, and it’s going to be a curse on the car dealer and the manufacturer that carries the paper. It’s going to hurt the broke person who bought a car he couldn’t afford. And it’s already a problem for our country, because it’s adding dollars to the national debt.

There’s always a twist with government programs like this. They try to think of creative ways to help people, but the situation usually ends up worse than it did before they “helped.” In the end, I should decide what to do with my own money. If I want to buy you a car, I will! And if you can’t buy a car without actually paying for the whole thing, then you’re better off keeping your “clunker.”

So good riddance to a really bad program that has done more damage than good.



AMEN!!!!!

Tour de Faith

This is near and dear to us. I know that this is a random post at that but I knew when I heard this man was doing this again this year I knew I needed to post and repost to get the word out. Here is someone on fire for supporting those who wish to have their children in Christian education but may not be able to afford it. Poppa J is on his way to bike 1500 miles and is due back to the area in several weeks. He is riding for donations for the Tuition Assistance Program at our Christian school. The need is there like neverbefore. Not just due to the economy but for many other reasons. This is truly near and dear to our hearts because we have before used scholarship for our children to attend this wonderful school. Please take a moment to read his blog as he just left. Follow along and if after prayer and reading and following his journey on Tour de Faith you feel lead to help financially do not hesitate. Him and his wife will be maching the donations raised. It is due in part of the generosity of others that our children have had the opportunity to have a Biblical education. Not one penny has ever been aken for granted. And for the families who need it as well, it will not either.
Enjoy and thank you for taking the time to read his bike journey!!

Getting Ready for "Back to School"

Thought I'd throw in this picture. I love it! I enjoyed visiting Seattle this summer.

Okay, so I have avoided this blog this summer for a few reasons. We are not really throwing down any debt, which I mentioned in my last post, and because there isn't really anything new going on. There are so many things regarding money I really want to touch on but feel as though the timing is inappropriate. I have an interesting variety of people reading this blog. Some which I know and others in which I do not. Heading back to school and this time of year for us is really overwhelming. I have pondered how much to put myself out there. I will do so with some reservations.

We are hit each year with the uncertainty of where are kids will be attending school. We have been a part of the most wonderful private Christian school for the past 5 years. The school is small, the teachers are outstanding and the curriculum is fabulous. Although this is all wonderful it costs a lot of money. Any of you that are reading and have done private or looked into it know exactly what I am talking about. Every year we make our last minute decisions the week before school begins. It is overwhelming for me. Add on to that, uniforms, school supplies, tuition, classroom fees, registration fees, shoes, coats..... and the list goes on and on.

For the first time this year I will be making due with what we have. The kids will get a new clothing item as needed and not all at once. They will be used or on massive clearance. I will be going thru their school supplies from last year and get only what cannot be used again. They will reuse backpacks and lunch boxes, that's a given. I will get back on track making my own breads and anything bread related. I will not worry one bit about name brand clothes or items.

So with this said I recommend going to Phoebe's post on frugal back to school shopping! I ended her post feeling refreshed and okay with what I am about to do in the next few weeks as we look at going back to school. I refer to her blogs a lot. She was one of two people who inspired RJ and I to do Dave Ramsey.