August 4, 2009 7:34 AM

DeMint: Gov't 'Out of Control' on Clunkers

By
David Morgan
Topics
Congress
(CBS)
The fate of the "Cash for Clunkers" program will be decided this week, depending on whether or not the Senate votes before leaving for its August recess.

Senate Democrats are struggling to win over enough reluctant Republicans to pass a $2 billion extension of the popular rebate program that gives consumers up to $4,500 to trade in their old gas guzzlers for more fuel-efficient vehicles.

Senator Jim DeMint, R-S.C., has been an outspoken opponent of the program, calling it on Sunday indicative of the "stupidity that's coming out of Washington right now."

On CBS' "Early Show" Tuesday, DeMint said, "This was another program that was rushed through without even reading the bill language. It was actually attached to an emergency war supplemental bill."

DeMint argued that the program is an example of government at its worst. "The dealers tell me it's been so mismanaged they have no idea when and if they're going to get their money," he told "Early Show" anchor Maggie Rodriguez.

Nonetheless, automakers are crediting the program with working too well: auto sales are up, and some dealers are actually complaining that they don't have enough cars to sell as inventories — stymied by plant shut-downs — are depleted.

"If we give away free money, people will buy cars," said DeMint. "But what about appliances, and heat pumps, and TVs? The problem here is instead of across-the-board tax cuts that would have the same effect on our whole economy, the federal government is trying to run a particular business by targeting just the auto industry here with this bill. That's not what the federal government is all about.

"And for us to rush through $1 billion and then say, 'Well, we don't know exactly what happened, but it's out of money after one week, so let's have $2 billion more!' this is just an out-of-control government at the federal level now, and we need to stop and see what we've done.

"It just doesn't make any sense to keep rushing through bills, borrowing money from our children, and then saying, 'Shazam, we've sold some cars!'"

  • David Morgan

    David Morgan is a senior editor at CBSNews.com and cbssundaymorning.com.

Add a Comment See all 49 Comments
by Kevman217 August 5, 2009 2:02 PM EDT
The problem with the program is the requirement that these "clunkers" be scraped. The point of the program was to get pollution levels from automobiles lowered to help the planet as well as to stimulate the economy. This plan is good news for dealerships, manufacturers, and some of the consumers who qualify. However, it is not good news for salvage yards, used car lots, and auto part dealers and manufactures who could be making money from people who own these "clunkers."
Stimulus can works when there are few or no losers in a deal. This can hardly be called economic stimulus, but is it good for the environment? If you trade in your SUV that gets 16MPG (combined) for one that gets 20 mpg, are you really helping the planet that much? How about if you factor in the waste from your old "clunker?" Fluids, plastics, years of hydrocarbon buildup in exhaust systems, lead and sulphuric acid from the car batteries are highly toxic. Not to mention energy used to crush the vehicle, energy used in recycling, transporting the materials from all of these "clunkers" to various facilities. As if that wasn't enough, think of the stuff the scrap yard doesn't want to deal with that would just end up in the landfill. At what point is the extra 4 mpg negated?
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by jhenry0508 August 5, 2009 6:10 AM EDT
You donot need actual vouchers or coupons to partipate in this program. All dealers are required and government will
reimburse the fees for the clunkers

Jhenry
Blogger
www.cashforclunkersfacts.info
http://www.cashforclunkersfacts.info
Reply to this comment
by mattcat25 August 4, 2009 1:21 PM EDT
PS: TAX CUTS are just like spending money...your's and mine.
Reply to this comment
by mattcat25 August 4, 2009 2:25 PM EDT
No really, we seen President Bush (and Reagan) both cut taxes on the wealthy while encreasing spending...especially Bush! increased spending and doled out the (our tax money) to Private War Contractors that didn't pay any taxes on revenues because they were independent Multi-National Corporations with back accounts in Dubai.

The TAX CUTS along with the increase in $PENDING on Iraq contributed greatly to the recession and diminishment of the US Middle Working Class living stanard.

Bush $pent it.
by mattcat25 August 4, 2009 11:18 AM EDT
President Bush promoted and had the Republican Congress enact a TAXCUT for businesses and individuals as incentive to purchase Sport Utility Vehicles (SUV). SUV's use more gasoline and were determined as unsafe in respect to rollover incidents. Firestone was overwhelmed and produced substandard tires exclusively for the SUV market due to the rush in orders.

The increase in fuel consumption created a greater demand for OIL along with harmful actions such as Military Actions in the Middle East. The increase of OIL costs contributed to the downfall of the US Economy and served as an INVISIBLE TAX on everything that needed to be transported.

Cash for clunkers has been a resounding success and will be continued. High mileage vehicles are being replaced by lower gas consuming models, the Auto Industry is benefiting from a stimulus in business, and the environment will improve (or, not diminish) by the ecological actions.

Thus, if the program works and is beneficial for every American, then of course the Conservative Republican Party and their cast of Bullies are against it!

GOP is against America.
Reply to this comment
by mattcat25 August 4, 2009 1:16 PM EDT
So what is it that you propose?
everyone stop driving automobiles?

If it wasn't for the Republicans driving the US into this situation there would be no need for these types of programs. And, no cars on the road would be great the US unfortunalety is fixed with the single operator vehicle.
by smoknmirrors August 4, 2009 11:07 AM EDT
Sen. DeMint, it may come as some surprise to you, but, YOU are the GOVERNMENT.
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by mattcat25 August 4, 2009 11:23 AM EDT
Republicans in the Congress are provided with a $alary, Travel Expenses, and Socialized HealthCare Coverage.

The GOP constantly contend the notion that GOVERNMENT DOES NOT WORK! And, every time they are in power they PROVE IT!
by endurorob August 4, 2009 10:45 AM EDT
mecury69 August 4, 2009 10:12 AM EDT

I now have extra cash from the gas savings to SPEND on other things (stimulus).




I forgot to mention that the car payment you are now making every month is going to one of the same financial institutions that are one of the primary causes of the nations financial troubles.
Reply to this comment
by endurorob August 4, 2009 10:42 AM EDT
elz523 August 4, 2009 8:55 AM EDT
This ******* Demint, needs to take reading lessons. He has complained more than once about having to read what is in the bills and keeps saying that he hasn't read them. I think the people of South Carolina deserve better.

He also doesn't seem to understand the idea of how a stimulus works. Provide money at an entry point to the economy (one such as the auto industry) and see the increased production put money into the hands of employees and auto suppliers. I'm not sure he could be as ignorant as he is pretending to be. Obviously it is just another tactic in the opposition of no.



The reason why he and many representatives hav not read these bills is because they are very extensive and the leadership (Obama, Pelosi, Reid) does not give the mebers time to read them before they come up for a vote. If they hide time to read then they would know whats in them and Pelreidama does not want that.
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by endurorob August 4, 2009 10:37 AM EDT
mecury69 August 4, 2009 10:12 AM EDT

I now have extra cash from the gas savings to SPEND on other things (stimulus).




I am going to assume that since your car was 20 years old it was paid off and that your insurance (if you had insurance) was minumal, likely liability only. Now with your shiny new car you have a car payment and you have to have full coverage imsurance. So with car payment and insurance you may be paying anywhere from $300 to $600 a month. How much driving do you do that you are saving more thatn that on gas every month to create your own personal stimulus.
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by midlclass August 4, 2009 10:34 AM EDT
lets see a program that works to well. proof that the goverment can run a program. ther also has been a 61% increase in fuel economy with the cars that have replaced the clunkers. less oil dependency. as for other programs i see a few commentss on health care. the fed. gov. currently runs one of the most cost effective health care plans MEDICARE an expansion of this program is all thaty is needed. if the ins. people are so worried about competetion then they need to start competing insted of running rough shod over people. the senator is a typical republican't. We can't do this because it helps out the middle class. we can't elimante the taxes cuts for the wealthy they pay to much 40% in the 1950's they wealthy had a 90% tax on there income. maybe we need to go back to this? it would help stimulate the economy and give the goverment moe money to put towards the deficiet
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by mycommentspg August 4, 2009 10:32 AM EDT
Some of you are blind! This program is just another example of government out of control! The taxpayer's money is being wasted with this program as with the stimulus. Three billion dollars being thrown out the window if they go forward with the additional amount. Why not give all this money to the actual taxpayer (at least actual people paying taxes) and the ecomomy would get the boost in all areas and not trying to pump money into the auto industry alone with stimulus money and now with this outrageous program. Congress is full of self-serving, money-grubbing Democrats and Republicans who do not serve the taxpayers who pay their outrageous salary, pension, and excellent healthcare.
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