You know the poem by Elizabeth Browning: "How do I love thee, let me count the ways". Well, let us COUNT the ways in thich this "cash for clunkers" Federal program proves the defects of central planning, and that the Federal Government is not capable of cnetrally planning this economy, or any major part of it (like health care):
1. Whatever you call it, you know the misbegotten program--that idea of distorting the car free market by "giving" $4500.00 credit to every person able to "trade in" a clunker. Well, after a mere four days, the program was such a complete mess that it has had to be suspended. First, the COST is already out of control, as--which everyone but the people who passed this absurdity knew would happpen--"clunkers" appeared out of the woodwork (or junkyards or whereever). Do you really believe that the Federal Government can really estimate the COST of the proposed health care bill when they can't even come close on the cost of something so apparently simple as this "clunker" of a progrram? Of course you don't believe that the government can accurately estimate the cost, and you are right. They will, 100% guaranteed, UNDERESTIMATE the costs.
2. The government could not even devise rational "regulations" for this supposedly "simple" program, and was CHANGING the "regulationis" on the fly. There were even reports of car dealers having to CANCEL deals already made, because of changing regulatons. Could you tow a car in? Did you have to have any "clunker" licensed and insured for the entire previous year? What kind of "clunker" did it have to be? Gas guzzler? Age? Did every single clunker really have to be DESTROYED within 48 hours? How? Think of the MCUH more complicated questions in any health care program, and you should feel like a shadow has passed over your grave. Once the Federal Government has dominant control of health insurance and health care, you are at the mercyof people who cannot even handle this clunker of a program.
3. Wehn Federal money is available, people are going to try to take advantage of it--some probably in violation of the intent of the program. Was this happening with the already suspended "clunker" program? Of course it was. And even if people are just trying to legitimately take advantage of what they war supposedly "entitled" to, theyWILL (rightly) feel that they should get what they are promised. Transfer this to health care. Will not everyone and his brother be trying to get in on the Federal health care money? Of course they will, and that is only the providers AND bureaucrats, "consultants", etc. The PEOPLE will suddenly want to get their money's worth--especailly if subsidized, by bringing their "clunker" of a body in for as much health care as they can get (before their rights are "suspended"). This is all as certain as death and taxes, and we can't afford it. Further, it is the MOST wasteful way to provide heealth care, and the most infuriating (in terms of having to deal with all of those--changing--Federal regulations).
4. Who says that some people (taxpayers) should pay for a good part of the price of a car for someone else? Yes, this IS a pretty effective, SHORT TERM, "stimulus". It is not much different that simply giving people $4500.00, beyond the annoyance of having to figure out a way to find a "clunker" to trade in (which also fits the "regulations"). WHY is it again that people are supposed to pay for the health care insurance of NON-POOR people? Remember, actual poor people have Medicaid and Medicare (which have their own problems).
5. Did Congress, and the Federal administrators of this "clunker" program, have any idea of the real effect of the program? It is obvious they did not, and yet they are now perhaps STUCK with continuing the program (or face ANGER). Once the government starts down the road of dominating all health care, and health care insurance, in this country, is there any (non-painful) way back? Of course there is not. That is why it should be done, if at all, on a STATE level, where there usually IS a way back. That is where the costs are also more obvious, and whre the people have more say and control when things start going wrong.
6. Did all of this mess really "save" energy, and "help" the environment? Was it ever MEANT to, or was it jsut one of those bribes for votes in which Congress has now become expert? I leave you to answer those questions on your own. You can't answer them wrong, unless you lie to yourself, or work for the Associated Press. Similarly, will furter Federal control of health care and health insurance really "improve" health care in this country? Not a chance.
7. Think of the poor dealers, and ultimately mabye even the car manufacturers. Firstt, they have to deal with Federal regulatioins they have no chance of understanding in advance, and then with ANGRY customers who don't understnad why they can't get simple answeres and consummate the transaction they thought was PROMISED to them. THEN, the program is SUSPENDED, as all of these customers try to take advantage of it. I actually pity the poor car dealers, and I was never overly fond of car dealers (one of the groups of people I used to sue fairly regularly in my former life as a lawyer). Then you have the ARTIFICIAL acceleration of demand. Yes, this actually "stimulates", in the short term (as did those checks last summer, which had no lasting benefit), but the sales are ROBBED FROM PETER TO PAY PAUL--robbed from later sales (except to the extent that many people may suffer predation from being pushed into vehicles they cannot really afford, even with the credit). Once the program ENDS, so do the car sales. What if car manufacturers have been misled as to demand because of this ARTIFICIAL, short term demand, or by the inevitable Wall Street/AP "news" that car sales are WAY UP (DUH!!!, but not real demand--purchased demand which cannot continue and itself short circuites any real recovery).
7. Dave Ramnsey advises people to CUT DEBT, starting with owing a "clunker" until you can really afford something better. Is not the government itself UNDERMINING all of the good Dave Ramsey is trying to do? Yes, this is that absurd conflict I have pointed out before between the government advice to SAVE, and live within your means while cutting debt, and the exact opposite advice to SPEND to help the economy. And NONE of it is REAL.. The government is distorting the market, ao that it is government action that is controlling everyone's lives. That will be true, in spades, with a health care takeover.
Enough. If you do't get the point by now, you never will. This "clunker" of a program (not well thought out or well administered) is a microsocosm of the FATAL defects of central planning. These defects are both from expereince, and in theory. Central planning not only does not work, but it CANNOT WORK.
You see wahy I am a pessimist. We really are the Titanic headed for an iceberg, and I am fairly certain we can no longer avoid the iceberg.
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