C4C Belly Flop!

October 6th, 2009

Government spending creates NO new wealth!  Congresswoman Betty Sutton’s Cash for Clunkers program is just another great example.

Betty SUtton's C4C Plan

Betty Sutton's C4C Plan For October

“This is the one stimulus program that seems to be working better than just about any other program.” – Transportation Secretary Ray LaHood

From: Online Wall Street Journal

Last week U.S. automakers reported that new car sales for September, the first month since the clunker program expired, sank by 25% from a year earlier. Sales at GM and Chrysler fell by 45% and 42%, respectively. Ford was down about 5%. Some 700,000 cars were sold in the summer under the program as buyers received up to $4,500 to buy a new car they would probably have purchased anyway, so all the program seems to have done is steal those sales from the future. Exactly as critics predicted.

The basic fallacy of cash for clunkers is that you can somehow create wealth by destroying existing assets that are still productive, in this case cars that still work. Under the program, auto dealers were required to destroy the car engines of trade-ins with a sodium silicate solution, then smash them and send them to the junk yard. As the journalist Henry Hazlitt wrote in his classic, “Economics in One Lesson,” you can’t raise living standards by breaking windows so some people can get jobs repairing them.

Betty, Nice work!

Sutton’s Green Plan

September 25th, 2009

“Liberalism always generates the exact opposite of its stated intent.” – Jim Quinn

cars

Betty Sutton's Cash For Clunkers - Green, but for who?

Oh Betty, is it true?  Were you really wrong, AGAIN?

Let’s take a look.

3/18/2009 DAILY NEWS: Rep. Betty Sutton introduces a cash-for-clunkers plan

“This is a very comprehensive bill with multiple beneficial effects that I think will make it palatable to enough of the Congress that we can enact it,” Sutton said Tuesday. “It not only assists consumers who need a lot of help in this economic downturn, but it will stimulate our economy, reduces emissions, and reduces our dependency on foreign oil.”

5/21/2009 Congress Woman Betty Sutton Press Release

helping consumers purchase more fuel efficient vehicles, helping boost sales of our domestic auto and related industries and helping our environment.I look forward to the swift passage of this measure on the House floor,” said Sutton.

6/09/2009 Cleveland.com: House adopts Rep. Betty Sutton’s “cash for clunkers” bill

“This bill is also about people,” Sutton enthused at a news conference after the bill’s passage. “It’s about the people who make those cars, who make the steel and iron that are used in those cars, it’s about the dealers, it’s about our environment, it’s about our economy, it’s about the strength of our nation.”

9/03/2009 Barberton Herald: Sutton is Clunker lady

Sutton said her goals with CARS, the Consumer Assistance to Recycle and Save act, was to help people buy new fuel efficient cars, reduce fuel use and provide a cleaner environment.

And now we learn the truth.

The following excerpt is from an online article by William Jeanes for AOL Auto.  In Cash for Clunkers Buyers Suffer Buyer’s Remorse, Jeanes points out the numerous flaws in Betty’s Cash For Clunkers (C4C) program.

Call me a naysayer, but I do not think adding individual household debt will lead us out of the financial wilderness. Nor will it, as applied in the C4C experiment, do much to lessen our dependence on fossil fuels. Quicker than you can say, “Holy statistics, Mr. Wizard,” the numbers nerds ascertained that the new vehicles sold under C4C will use more—not less—fuel than the beaters that were turned in and destroyed.

How can that be? Think of it on a personal level. Suppose you had a 10-year-old particulate belcher that, as the euphemism goes, needed work. Even if you lived in an Orlando suburb, you’d still be less than excited at the idea of piling the kids into it and lighting out for Disney World. But that new Malibu that gets a hell of a lot better mileage is a different kettle of green. You trust it; it’s economical; you drive it more. A lot more, according to another piece of research.

CNW surveyed drivers involved in the purchase of the first 239,000 C4C vehicles. The average intended annual mileage was 10,894, up from the actual clunker mileage of 6,162. For those of you without a calculator falling readily to hand, that’s nearly double.

But what about that miles-per-gallon improvement we were promised? Well, we got it. The average fuel economy reported by C4C buyers rose from 16.3 mpg for Old Dobbin to 24.8 for the new carriage. A monster step in the right direction. Add to that the over-90-percent reduction in tailpipe excretions and we’re still looking good, right?

Not as good as we might. The new car, because it’s new and fun and green and clean and smells good, will be given some 61 additional gallons each year by its grateful owner. For those first 239,000 C4C vehicles, that’s 14.6 million gallons that the clunkers wouldn’t have gobbled up. The approximately 700,000 total vehicles moved under the program will therefore use an additional 42 million gallons of fuel annually during the first years of ownership.

read more: AOL Autos

From increased consumer debt to a greater dependence on foreign oil – it does appear that Congresswoman Sutton gave us one clunker of a bill.

Betty, Considering how wonderfully your predictions of a greener auto fleet have stood up against the real world numbers, are you starting to understand why WE DON’T TRUST YOU?

Where’s Betty Sutton? – Take me home, country roads.

September 16th, 2009

In this week’s edition of  “Where’s Betty” we find our intrepid explorer, Betty Sutton, heading for coal country.

Betty Sutton visits West Virginia

Betty "Keep'n it Green" Sutton to visit Coal Country - West Virginia

Sometimes when I think back on all the great Town- Hall meetings we didn’t have with Congresswoman Betty Sutton, I get a little irritated.  But then something like the West Virgina Federation of Democratic Women’s annual meeting brings it all back into perspective.  When I see events like this, I step back and try to be more understanding of the representatives new found fame as “The Clunker”.

Congresswoman Betty Sutton is one of the hottest commodities going on the lecture circuit, and it would be wrong for us to expect her to make time for local radio shows, conservative groups, or individual constituents. Betty is a free thinking congressional leader after all,  and although she represents the 13th district of Ohio, we must always remember that Betty “The Clunker” Sutton is a representative of everyone.

The West Virginia Federation of Democratic Women will have the annual meeting beginning 2 p.m. Friday and continuing through Sunday at the Weirton Holiday Inn, 350 Three Springs Drive, Weirton. Rep. Betty Sutton, D-Ohio, will be among keynote speakers Saturday. Other speakers include Gov. Joe Manchin; Rep. Alan Mollohan and his wife, Barbara; Secretary of State Natalie Tennant; State Treasurer John Perdue; House Speaker Rick Thompson, and state Sen. Jeff Kessler. Sutton was the key author of the “Cash for Clunkers” program and serves on the House Energy and Commerce Committee. wvgazette.com

For those keeping track, Weirton, WV is nearly 100 miles Southeast of the 13th district’s southern boarder.  The travel time alone would be enough for a real Town-hall meeting.

Thanks for everything Betty!

Cash For Clunkers Update

September 1st, 2009

junk

Betty Sutton Spends Our Money On Some Sweet Rides

Automakers have released their sales numbers for the month of August.  Betty’s Cash For Clunkers program lead to some interesting results.

  • Ford sales up 17%

  • Toyota sales up 6.4%

  • Honda sales up 9.9%

  • Hyundai Motor America  sales up 47%

and then there are these:

  • Chrysler sales DOWN 15%

  • GM sales DOWN 20%

All I can say is, “Thank You Betty Sutton!”  Maybe you could help us with health care too!